A new airline player hit hard by the health crisis. The aircraft engine manufacturer Rolls-Royce announced on Wednesday the abolition of "at least" 9,000 jobs because of the collapse of air traffic caused by the coronavirus pandemic.
In a press release, the group justifies its decision by evoking the “unprecedented” impact of the Covid-19. It is becoming "increasingly clear that it will take several years for the commercial aeronautics market to return to its levels of a few months ago," he adds.
Close to 1.5 billion euros in savings
The planned cuts represent 17% of a total workforce of 52,000 people. They will mainly affect civil aviation activities, administrative functions, but not the defense branch. A source familiar with the matter had told AFP in early May that the industry group was considering up to 8,000 job cuts. "Our customers in aviation and aeronautics must adapt and so do we," said Warren East, the chief executive, quoted in the release. "Governments are doing what they can to support businesses in the short term, but (…) they cannot sustainably replace the demand for customers that does not exist", he continues.
Rolls-Royce says its "major" restructuring accompanied by cost reductions "in factories and assets, capital and indirect (costs)" should in total save 1.3 billion pounds (1.45 billion euros), of which 700 million will come from layoffs. In particular, the group had already canceled the payment of a dividend.
British Airways, Ryanair, Virgin Atlantic ...
The airline industry is one of the most affected by the fallout from the coronavirus pandemic and the containment and movement restrictions measures implemented to curb its spread. In the UK, airlines British Airways, Virgin Atlantic and Ryanair among others have already announced thousands of job cuts. Meanwhile, UK Transport Minister Grant Shapps told parliament Monday that 43,500 people had been laid off in aviation in the UK due to the coronavirus crisis, and 2,600 at airports.
Rolls-Royce had already reduced its workforce by 4,600 people, mainly in administration, since 2018. The engine manufacturer had reduced its net loss in 2019 thanks to better commercial performance, despite the costly problems on its engines. Trent 1000 plane that sealed its accounts for several years. But the health crisis struck him again.
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