Rolls-Royce is to announce job cuts this week, which could affect up to 10 per cent of the firm’s 50,000 workforce, including many middle manager and back office roles .
The Sunday Times reports Chief Executive Warren East will continue with his mission to cut what is seen as duplicated roles.
The move is said to be a necessary part of the Derby headquartered luxury car-manufacturer’s cost cutting programme.
Pundits suggest the job cuts may be announced at an analyst briefing on Friday, although Rolls-Royce refuse to comment on “media speculation” about the impact of changes to the business.
To date, Warren East has cut around 5,500 jobs in an effort to shave off the manufacturer’s £200m annual costs and just last year, the firm struck a deal with unions to safeguard 7,000 British jobs agreeing not to make compulsory redundancies among its engineers for five years.
A spokesperson for the company said: “In January, we announced a simplification of our business and began work on a restructuring of our support and management functions. We added at the time of our annual results in March that we would focus on operational restructuring of management, support and engineering and technology functions across the corporate centre and also in our three divisions (Civil Aerospace, Defence and Power Systems).”
“We said we had retained restructuring experts Alvarez & Marsal to support us with this programme,” the spokesperson continued. “We added that we expected this programme to deliver a significant reduction in costs and assist us in improving performance across the group as a whole, and that we would provide clarity of these benefits at an event for financial analysts and investors on 15 June. We are not commenting on current media speculation about the potential impact.”