Human Resources magazine and the HR Bulletin daily email newsletter:
Asia's only regional HR print and digital media brand.
Register for your FREE subscription now »
Struggling British maker Rolls-Royce Holdings announced on Sunday it would shed 200 more management roles through a buyout program. The job cuts which was first reported by Financial Times will affect the company’s aircraft-engine business, which supplies Boeing Co. and Airbus Group SE.
The redundancies bring to almost 700 the number of management jobs cut this year alone, and follow programmes initiated by former chief executive John Rishton in November 2014, in which 3,000 jobs were cut from the civil aerospace and marine divisions.
Warren East who took over from Rishton last year has been trying to accelerate restructuring measures at Rolls-Royce, the company had received five profit warnings since 2014.
The latest job cuts were part of his turnaround program last year, with the aim of saving between US$195 million to US$260 million a year by 2017.
“This is part of our ongoing transformation program, designed to remove complexity and cost by simplifying our processes and our structure”, a Rolls-Royce spokesperson said in a statement to Reuters.
One Rolls-Royce insider told the Financial Times that while the formal programme to streamline senior and middle management was now complete, the drive to seek efficiency wherever possible would continue, which could mean some job losses. But this would be done on a voluntary basis where possible.
In the past two years, staff numbers have been cut by close to 7% from 54,100 to 50,500. The company is trying to retool its workforce, over the past five years, it has has doubled the number of employees in its nuclear division and focused on hiring employees with digital development skills to help take advantage of the in the current era of big data.
ALSO READ: Job cuts at Microsoft and Lloyds Bank