Rolls-Royce: to cut 4,600 jobs as part of restructuring
(CercleFinance.com) - Rolls-Royce has announced plans to make around 4,600 redundancies on Thursday - mainly in the UK - as the British aero-engine maker is launching a restructuring program intended to create a "smaller and more cost effective" company.
Around a third of these lay-offs are to occur by the end of 2018, Rolls-Royce said.
While the job cuts are expected to gain further momentum through 2019, the full implementation of headcount reductions and structural changes is expected by mid-2020.
Rolls-Royce recently said it was targeting a level of free cash flow "well beyond" its near-term ambition of around 1 billion pounds by around 2020.
The total cash cost of the restructuring is expected to be around 500 million pounds, the group said, which includes the cost of redundancies and systems investments to facilitate the program.
These cash costs will be incurred across 2018, 2019 and 2020.
Regarding business, Rolls-Royce said that current trading was "in-line with expectations".
Shares in Rolls-Royce were up 2.8% at 851.4 pounds in London after these comments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Around a third of these lay-offs are to occur by the end of 2018, Rolls-Royce said.
While the job cuts are expected to gain further momentum through 2019, the full implementation of headcount reductions and structural changes is expected by mid-2020.
Rolls-Royce recently said it was targeting a level of free cash flow "well beyond" its near-term ambition of around 1 billion pounds by around 2020.
The total cash cost of the restructuring is expected to be around 500 million pounds, the group said, which includes the cost of redundancies and systems investments to facilitate the program.
These cash costs will be incurred across 2018, 2019 and 2020.
Regarding business, Rolls-Royce said that current trading was "in-line with expectations".
Shares in Rolls-Royce were up 2.8% at 851.4 pounds in London after these comments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.