Rolls-Royce might cut up to 8,000 jobs, according to a report from The Financial Times, as COVID-19 has seen aircraft manufacturers slash production.
The company employs 52,000 worldwide, 23,000 of which are in the UK.
According the report, work has “begun on a restructuring plan” that would reduce Rolls-Royce’s workforce “by up to 15%.”
Staff are expected to be notified of the actual number of job losses at the end of May.
In April, the Derby-based manufacturer revealed measures to cut costs in the wake of the novel Coronavirus.
The company said it was “executing a number of specific mitigations to reduce [its] cash expenditure which will have a cash flow benefit of at least £750 million in 2020 in addition to [its] ongoing transformation plans.”
These moves included minimising discretionary costs such as non-critical capital expenditure projects, consulting, professional fees and sub-contractor costs, ceasing all non-essential travel and postponing external recruitment. Salary costs were also to be reduced across Rolls-Royce’s global workforce by at least 10% in 2020, subject to local legal requirements.
Salaries for senior managers and the Executive Team were to be reduced by 20% for the rest of 2020, comprising a reduction of 10% and a deferral of 10%, with an additional bonus deferral for the CFO and CEO. There was also a corresponding reduction in fees for Non-Executive Directors of the Board for the remainder of the year.