Rolls-Royce to cut 2,600 jobs over next 18 months

Rolls-Royce has announced it is planning to cut 2,600 jobs over the next 18 months.

The company said most of the jobs would go in its aerospace division, with most of the posts being shed in 2015.

It is not clear where the cuts will be made from Rolls-Royce’s global workforce of 55,000, 24,000 of whom are in the UK.

The company’s chief executive John Rishton said: “The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”

Last month, Rolls warned that its underlying revenues for 2014 would be 3.5-to-4% lower than expected.

The company said voluntary redundancy would be offered, although it could not rule out compulsory redundancies.

The company’s UK staff are employed at four locations in the East Midlands, as well as 1,500 at five sites in the North West and 2,400 employees at six locations across Scotland.

The two largest sites are in Bristol and Derby.

Rolls-Royce said it had become more efficient, and cited the fact a large engineering team, needed for the development phase of two Trent engines, were no longer needed as both these were now in production.

That would point to job losses in Derby, where the Trent engines, used by many international airlines, are built.

Rolls-Royce is the second largest aero-engine maker in the world.

The company has customers in more than 120 countries, including more than 380 airlines and leasing firms, 160 armed forces, 4,000 marine customers including 70 navies, and 1,600 energy and nuclear customers.