Rolls-Royce Holdings is planning to fire about 8,000 employees during the pandemic COVID-19 crisis which has been badly hit the aviation industry. Discussions with labour unions are on and the aircraft engine maker plans to announce the decision by end of May. Moreover, the firm has ditched targets on profits and suspended dividends for the first time ever since 1987.
British aero-engine maker “Rolls-Royce” Holding is considering about cutting up to 15 percent of its workforce. It comes as the customers cut production and airlines park planes during the covid-19 pandemic. So Rolls-Royce could plan up to 8,000 employees after aircraft manufacturers were forced to cut production amid the Corona virus pandemic. The aeroplane engine maker employ about 52,000 people worldwide and with 23,000 staff in the UK.
According to a source, senior leaders warned “cuts could be as high as 8,000, but efforts to mitigate the impact are ongoing”. Rolls-Royce is expected to tell the staff the actual number of job losses by the end of May. The aviation industry has been hit by the pandemic situation as many flights around the world have been suspended. Airbus has cut its production by a 3rd and has gave up 3,200 staff.
Derby council leader Chris Poulter told that it was worrying after Rolls-Royce confirmed some of the 10,000 staff at its 2 sites in the city could be affected. A Rolls-Royce spokesman said -“We have taken swift action to increase our liquidity, dramatically reduce our spending in 2020, and strengthen our resilience in these exceptionally challenging times. But we will need to take further action. We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month.It added negotiations were ongoing and it would “consult with everyone affected”.The Unite union said it was “making no comment whatsoever at this stage”.