ENGINEERING giant Rolls-Royce is axing up to 2,500 workers in a bid to become “more streamlined and efficient” under its new boss.
The aircraft engine-maker has 42,000 staff worldwide, with around half of them in England — largely based at its Derby headquarters.
Rolls has 13,700 in Derby, 3,400 in Bristol, and more in smaller bases in Lancashire, Glasgow, Tyne & Wear and Rotherham.
Boss Tufan Erginbilgic has yet to reveal where the job axe will fall, but reports have suggested that hundreds of back-office posts will be hit in the UK.
Sharon Graham, general secretary of Unite, said the union only heard about the cuts in the media and that staff would have to wait another three months to find out if their jobs were safe.
Ms Graham said: “This announcement appears to be about appeasing the markets and its shareholders while ignoring its workers.”
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Mr Erginbilgic, who became chief executive in January, said the proposed job cuts would “remove duplication and deliver cost efficiencies”.
He said: “We are building a Rolls-Royce that is fit for the future.”
Under the plans, Rolls-Royce will merge its engineering technology and safety teams, and improve its procurement and supply chain management processes.
Its finance, legal and human resources teams will also be brought together across the group.
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The firm was badly hit during the Covid pandemic when airlines cut orders.
It was forced to raise billions to support the business, and in 2020 it axed 9,000 jobs.
Russ Mould, investment director at AJ Bell, said: “While not good news for people working for the engineer, cutting jobs means saving money in the future.”
Mr Erginbilgic said the changes announced yesterday were another step on Rolls’ multi-year transformation to build a company which is “high-performing, competitive, resilient and growing."
AIRPORTMUST CUT FEES CAP
THE competition regulator has backed a decision by the Civil Aviation Authority to cut the cap on Heathrow’s average charge per passenger.
The CAA ruled earlier this year that the charge must be reduced from £31.57 to £25.43 over the next three years.
The airport wanted to raise the fees it charges airlines, which are generally passed on to travellers in fares.
The Competition and Markets Authority supported the CAA move — but airlines wanted an even bigger cut.
Virgin Atlantic said: “The CAA’s decision did not go far enough to protect consumers from excessive charges at Heathrow.”
A Heathrow spokesperson said of the reduction: “We’re naturally disappointed, but it’s time to move on.”
However, it may not yet be all over. The CMA said: “There are a handful of smaller issues we have ordered the CAA to look at again.”
MIKE Ashley’s Frasers Group is buying Sportscheck for an undisclosed fee.
The retailer has 34 stores across German cities, and Frasers boss Michael Murray said the deal brings the UK firm closer to being a global sports player.
EXIT FEES SHAKE-UP
WEALTH manager St James’s Place has been forced to cut its highly-criticised exit charges, which led to a 20 per cent share slump on Friday.
It will change its charging structure, scrapping early withdrawal penalties on investment bonds and pensions from 2025.
It has acted after pressure from regulators and consumers and to ensure it complies with new consumer rules introduced by the Financial Conduct Authority earlier this year.
HOUSES TUMBLE
BUILDER Bellway has warned it will build a third fewer homes in the next year because of low demand.
It plans to build just 7,500 homes in 12 months, down from 11,000 this year.
The firm also predicted house prices would drop by 5 per cent in the coming year, to £295,000 from £310,306.
Boss Jason Honeyman said: “Inflation and an increase in mortgage interest rates continue to impact affordability and demand.”
Pre-tax profits fell 18 per cent to £532.6million for the year to July.
REVOLUTION BARS IN SPIN
THE late-night hospitality industry is facing “very challenging” times, the boss of Revolution Bars has warned, but he hopes confidence will return as inflation peaks.
The business, which runs Revolution, cocktail hub Revolucion de Cuba and Peach Pubs, said like-for-like sales fell 9 per cent in the 12 months to the end of July.
It meant a pre-tax loss of £22.2million for the year, compared to a profit of £2.1million last year.
Boss Rob Pitcher said inflation had hit people’s ability “to spend on discretionary items such as nights out”.
ELECTRIC VAN FIRM CRASHES
ELECTRIC van business Volta Trucks has filed for bankruptcy, hitting 600 jobs in Warwick, Coventry and Reading.
Its battery supplier Proterra went bust in the US in August and the firm has had difficulty finding replacement batteries which hit its ability to raise necessary investment.
Volta Trucks said in a statement: “The uncertainty with our battery supplier negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players.”
The company filed for bankruptcy in its native Sweden on Tuesday and said it will “shortly file for administration in England”.
Insolvency practitioners from Alvarez & Marsal are expected to be appointed to look after the administration.
The company was set up in Sweden in 2019 but has since established most of its business and engineering operations in the UK.
Volta Trucks was creating the first purpose-built 16-ton electric truck on a unique cab and had about 5,000 orders.
Some customer deliveries of its HGVs began in Europe this year but were due to be ramped up this autumn.
100 FACE THE AXE AT KPMG
KPMG is to cut around 100 people from its 1,700-strong deal advisory division.
The accounting giant has been hit by a decline in mergers and acquisition activities in the City against the backdrop of economic uncertainty.
The firm announced: “Some clients have chosen to pause or delay projects.
“We have therefore taken the difficult decision to put forward proposals to reduce our headcount in our business.”
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Last week, KPMG was hit with a record £21million fine by the auditing watchdog over its work for collapsed outsourcing business Carillion.
Meanwhile in the US, social media firm LinkedIn is laying off 668 employees in three teams, blaming the cuts on slowing revenue growth.
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