The restructuring led by the new president of the Rolls-Royce Group, with the aim of reducing costs, includes laying off 6⁒ of the global workforce of 42,000 employees in its factories around the world, and this constitutes the second phase of a reorganization plan extending over several years.
Published on: 10/17/2023 – 18:09
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“We are building Rolls-Royce to be ready for the future, which means achieving a leaner and more efficient company,” Tuvan Erginbilgic, Managing Director of the British industrial group Rolls-Royce, which specializes in aircraft engines, said in a statement.
The group had significantly reduced the number of its employees by eliminating nine thousand jobs during the Corona pandemic, when the aviation sector was completely paralyzed, but it returned to achieving profits in 2021 after being greatly affected by the Corona pandemic, and then the group fell again into the red zone in 2022.
In August 2023, the engine manufacturer posted a net profit share of £1.2 billion for the first half of the year, compared to a loss of £1.6 billion during the same period of the previous year, which was explained specifically by a significant decline in Futures as the dollar rises, in addition to price inflation and supply chain problems.
Erginbilgic, who assumed the presidency of the group in early 2023, after serving as a former executive at British Petroleum, spoke in detail about his plan to prioritize investments in “projects that generate greater profits,” and also highlighted “the urgent need to think differently.” He raised the issue of job abolition.
Rolls-Royce shares rose 1.87 percent to 217.50 pence on Tuesday on the London Stock Exchange, after announcing a reduction in the number of the group’s employees around the world.
CMC Markets analyst Michael Hewson said: “The performance of Rolls-Royce shares was among the best this year, as its price more than doubled in the wake of the transformation plan launched by former CEO Warren East and led by current CEO Tuvan Erginbilgic.” .
He pointed out that the company “in August revised its basic profit expectations, raising them from the range of 800 million to 1 billion pounds sterling, to between 1.2 and 1.4 billion pounds sterling.”
In addition to aircraft engines, the group is also working to enter new areas such as its program to innovate reactors for small nuclear power stations in the United Kingdom.
2023-10-17 16:09:09
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