Rolls-Royce eyes job cuts this month as aerospace market shrinks

(Reuters) – British aero-engine maker Rolls-Royce (RR.L) signalled on Thursday it expects to cut some of its workforce to respond to the slump in the global aerospace market, saying it would inform affected employees before the end of this month.

The company, one of the world’s main producers of jet engines for airliners, said it was cutting its forecast for production for widebody plane engines this year and taking steps to save 1 billion pounds in costs.

It will consult with trade unions on any layoffs.

One of Britain’s most historic industrial names, Rolls was trying to emerge from a multi-year turnaround plan when the coronavirus crisis hit the air industry this year.

In line with thousands of British companies, it said it had furloughed 4,000 staff in the UK and now expected to deliver around 250 widebody engines in 2020, down from its prior forecast of 450.

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