@CapitalFMNews

British engine maker Rolls-Royce cutting 4,600 jobs

2 months ago, 14 June 10:22

By: Agence France Pres ...

, London, UK, Jun 14 – Rolls-Royce, the British maker of plane engines, said Thursday that it plans to cut 4,600 mainly British jobs by 2020, adding to thousands of cuts already announced in recent years.

“Rolls-Royce announces the next stage in our drive for pace and simplicity with a proposed restructuring that will deliver improved returns, higher margins and increased cash flow,” the group said in a statement.

The London-listed company, whose engines are used in Airbus and Boeing aircraft, said the latest cuts would produce £400 million ($536 million, 454 million euros) of annual cost savings by the end of 2020.

Rolls has faced a tough trading environment in recent years on weak demand for its plane engines and marine power systems.

Although it roared back into profit last year, this was largely owing to a recovery in the pound.

“Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth,” the company’s chief executive Warren East said alongside Thursday’s announcement.

“The creation of a more streamlined organisation with pace and simplicity at its heart will enable us to deliver on that promise, generating higher returns while being able to invest for the future,” he added.

Rolls said the latest round of restructuring was expected to cost the group £500 million.

“These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1 billion by around 2020,” East added.


Read More


Category: business

Suggested

4 hours ago, 00:08
@StandardMedia - By: James Wanzala
Form mergers, review strategies to be relevant, CS urges trade unions

Cabinet Secretary, Ministry of Labour and Social Protection Ambassador Ukur Yatani has urged trade unions to form partnerships. ...

Category: business news
11 hours ago, 17:50
@TheEastAfrican - By: Business Daily
Regulator suspends troubled ARM Cement from NSE

The company was placed under administration on Friday. ...

Category: topnews news business
10 hours ago, 18:01
@BusinessDaily - By: Edwin Mutai
Probe senators over Ruaraka land bribe claim, says Kajwang

It is alleged that Mr Mburu has submitted an audio recording of the Senators soliciting the bribe money to the DCI for investigations. ...

Category: business lifestyle news
9 hours ago, 19:42
@AfricaNews - By: Africanews
Ghana economy: IMF checks to stay in place after bailout package | Africanews

Ghana committed with the IMF in 2015 to an expanded credit facility program of nearly $1 billion, as a result of overspending and the depreciation of the cedi against the dollar ...

Category: africa africa_business business news
10 hours ago, 17:56
@BusinessDaily -
Court stops owner of Solai dam from leaving the county

Patel Kansagra barred from flying out although another judge had allowed him to do so. ...

Category: business lifestyle news
13 hours ago, 15:55
@DailyNation -
Potato project to unlock potential of crop in the Rift

It is possible to more than double the productivity of potatoes by using good agricultural practices that include the growing of certified seed potato. ...

Category: topnews news business

@CapitalFMNews

British engine maker Rolls-Royce cutting 4,600 jobs

2 months ago, 14 June 10:22

By: Agence France Pres ...

, London, UK, Jun 14 – Rolls-Royce, the British maker of plane engines, said Thursday that it plans to cut 4,600 mainly British jobs by 2020, adding to thousands of cuts already announced in recent years.

“Rolls-Royce announces the next stage in our drive for pace and simplicity with a proposed restructuring that will deliver improved returns, higher margins and increased cash flow,” the group said in a statement.

The London-listed company, whose engines are used in Airbus and Boeing aircraft, said the latest cuts would produce £400 million ($536 million, 454 million euros) of annual cost savings by the end of 2020.

Rolls has faced a tough trading environment in recent years on weak demand for its plane engines and marine power systems.

Although it roared back into profit last year, this was largely owing to a recovery in the pound.

“Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth,” the company’s chief executive Warren East said alongside Thursday’s announcement.

“The creation of a more streamlined organisation with pace and simplicity at its heart will enable us to deliver on that promise, generating higher returns while being able to invest for the future,” he added.

Rolls said the latest round of restructuring was expected to cost the group £500 million.

“These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1 billion by around 2020,” East added.


Read More

Category: business

Suggested

4 hours ago, 00:08
@StandardMedia - By: James Wanzala
Form mergers, review strategies to be relevant, CS urges trade unions

Cabinet Secretary, Ministry of Labour and Social Protection Ambassador Ukur Yatani has urged trade unions to form partnerships. ...

Category: business news
11 hours ago, 17:50
@TheEastAfrican - By: Business Daily
Regulator suspends troubled ARM Cement from NSE

The company was placed under administration on Friday. ...

Category: topnews news business
10 hours ago, 18:01
@BusinessDaily - By: Edwin Mutai
Probe senators over Ruaraka land bribe claim, says Kajwang

It is alleged that Mr Mburu has submitted an audio recording of the Senators soliciting the bribe money to the DCI for investigations. ...

Category: business lifestyle news
9 hours ago, 19:42
@AfricaNews - By: Africanews
Ghana economy: IMF checks to stay in place after bailout package | Africanews

Ghana committed with the IMF in 2015 to an expanded credit facility program of nearly $1 billion, as a result of overspending and the depreciation of the cedi against the dollar ...

Category: africa africa_business business news
10 hours ago, 17:56
@BusinessDaily -
Court stops owner of Solai dam from leaving the county

Patel Kansagra barred from flying out although another judge had allowed him to do so. ...

Category: business lifestyle news
13 hours ago, 15:55
@DailyNation -
Potato project to unlock potential of crop in the Rift

It is possible to more than double the productivity of potatoes by using good agricultural practices that include the growing of certified seed potato. ...

Category: topnews news business
Our App