Global Coronavirus Pandemic hit the world economics hard. All sectors started to dismiss workers due reduced workload. Rolls Royce is also one of them. On account of the uncertainty and economic crisis brought by the pandemic, Rolls Royce will dismiss nine thousand employees. Rolls-Royce CEO Warren East speaks to BBC about this difficult choice.
Rolls Royce choose to act now to secure the future of company. With this choice, they believe to prevent further job loses. They are also considering to close some of factories as well.
As Warren East said, they will contact with unions to decide where Rolls Royce are going to dismiss workers or close production as they didn’t decided yet. Rolls Royce currently employs 52.000 workers around the world and 14.590 of them employed in Britain. Just in Derby city they employ 9.000 workers as equals to how many they are going to fire. In addition to this They may close some of factories located in Britain as well.
Royce Rolls plans to save money with reducing the number of employees
With the projected restructuring process; Rolls Royce plans to save approximately 1.3 billion pounds. The cuts are expected to effect civil aviation teams of the company; which is the 2/3 of their total number of employees. On the contrary Rolls Royce military aviation teams will work on full schedule in United States and the United Kingdom. They also considering to direct some of it’s staff to Military factories. As East told to BBC there will be opportunities for some of the recent employees in the military branch of Rolls Royce.
Job loses in aviation industry was not a big surprise. While Covid-19 Pandemic airlines reduced their flight hours drastically up to 95 percent. Airliners are having a hard time to cope with the new situation. Governments around to world are so busy fighting with pandemic they almost ignored civil aviation companies except cargo operators.