LONDON (dpa-AFX) - Rolls Royce Holdings plc. (RYCEF.PK, RR.L, RYCEY.PK) is considering to cut some of its jobs, saying that it will give further details of impact of the current situation on the size of its workforce before the end of this month.
In his update to shareholders, Chief Executive Warren East said the company is working hard to mitigate the near-term disruption caused by COVID-19 and is making stronger than expected progress on its mitigating actions. It will give confidence that it can now deliver up to 1.0 billion pounds of savings this year.
Looking ahead, the severity of the disruption caused by COVID-19 is expected to lead to a smaller commercial aerospace market which may take several years to recover. As a result, the company is actively pursuing changes to its business, particularly in Civil Aerospace, to better align to medium-term market conditions.
The company said it is committed to working with its trade union and employee representatives, as well as customers and suppliers, as we adjust to the new outlook and establish a more appropriate cost base in order to secure our future for all stakeholders.
'We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month and will consult with affected employees in due course,' the company said.
The company said its airframe customers have reduced aircraft production rates and as a result it currently expects to deliver around 250 widebody engines in 2020, down from the previous guidance of 450.
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