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Rolls-Royce to cut at least 9,000 jobs after demand is hit by the coronavirus pandemic
AEROSPACE giant Rolls-Royce plans to cut at least 9,000 jobs globally after demand was hit by the coronavirus pandemic.
The Derby-based company - which employs 52,000 people worldwide including 23,000 workers in the UK - said "difficult decisions" had to be made in these "unprecedented times".
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The restructuring will mainly affect Rolls-Royce's civil aerospace division as well as the company's central support functions.
Rolls-Royce wouldn't confirm how many affected workers are based in the UK, as it said it needs to consult with trade union representatives.
But around two-thirds of the UK employees work in the civil aerospace side, giving an idea of where the impact will fall the most.
The announcement comes after reports earlier in May said that Rolls-Royce would cut up to 8,000 jobs after coronavirus forced Boeing and Airbus to reduce aircraft production.
Last month, Airbus warned 135,000 workers to prepare for job cuts as it’s "bleeding cash" due to coronavirus.
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IF you're being made redundant, you may be eligible for the below, according to GOV.UK.
- Redundancy pay: If you've been working for your current employer for at least two years, you're usually entitled to a statutory redundancy pay.
- A notice period: According to redundancy law, you’re entitled to a minimum notice period of 12 weeks’ if employed for 12 years or more, at least one week’s notice if you have been employed between one month and two years, or one week’s notice for each year if employed between two and 12 years. If your employer doesn’t want you to work your notice period they can offer you a lump sum instead.
- A consultation with your employer: Employers always have to consult with employees before dismissing them on the grounds of redundancy. In short, your employer must tell you what’s going on and give you a chance to ask questions and raise objections.
- The option to move into a different job: Your employer might offer you "suitable alternative employment" within your organisation or an associated company. Keep in mind that you may lose your right to statutory redundancy pay if you unreasonably turn it down.
- Time off to find a new job: If you’ve been continuously employed for two years, you could be given a reasonable amount of time off to look for another job or to arrange training to help you find another job.
The pandemic has also hit hard against the car manufacturing industry, with Nissan and Toyota both closing their UK plants in March.
BMW, Honda, and Ford are among other top manufacturers that have suspended production as a result of coronavirus.
Warren East, chief executive of Rolls-Royce, said: "This is not a crisis of our making. But it is the crisis that we face and we must deal with it.
"Our airline customers and airframe partners are having to adapt and so must we.
"Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce.
"But we must take difficult decisions to see our business through these unprecedented times.
"Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there."
Following the announcement, Downing Street said it would continue to support Rolls-Royce and other aerospace firms during the "challenging" period.
The Prime Minister's official spokesman said: "We know that this will be distressing news for Rolls-Royce employees and their families, and we stand ready to support them in any way that we can.
"Whilst this is a commercial decision for the company, we will continue to work closely to support Rolls-Royce and the industry to keep investing in aerospace technology here in the UK.
"Firms can draw upon a range of financial support during this challenging time including £330 billion of loans and guarantees, tax deferrals and the furlough scheme for workers."
It comes after Chancellor Rishi Sunak yesterday warned of a "never-before-seen" recession.
He told MPs the Government would not be able to save every job and there could be a long-term "scarring" of the British economy.
The number of people claiming unemployment benefits has soared to 2.1million, rising by 856,500 in April compared to March.
Meanwhile, the amount of Brits relying on the Government's furlough and self-employment schemes has hit 10million.
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MOST READ IN NEWS
In 2017, Rolls-Royce revealed a £4.6billion loss - one of the biggest losses in UK corporate history.
The engine maker was also hit by a bribery scandal and the weak pound.
And in 2018, it axed 4,600 job as it tried to save £400million.
Robert Jenrick on 8,000 potential job losses at Rolls-Royce aerospace in Derby as coronavirus hits demand
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