(Boursier.com) – As feared, Rolls Royce will sharply cut its workforce while the impact of the Covid-19 crisis on the British group and the entire aeronautical industry is unprecedented. The firm explains that it has already taken measures to strengthen its financial resilience and reduce its cash outflows in 2020. "However, it is more and more evident that activity on the commercial aerospace market will take several years to regain levels observed just a few months ago. We must now tackle these structural changes in the medium term, as customer demand is drastically decreasing for our civil aerospace engines and after-sales services, "said management.
In this context, the management is proposing a major reorganization of the company with the elimination of at least 9,000 jobs out of the 52,000 that the company currently has. In addition to the savings generated by this downsizing, the group will also reduce its spending in areas such as real estate, capital and other indirect costs. The proposed reorganization is expected to generate annualized savings of more than £ 1.3 billion. The costs associated with this restructuring are expected to be around £ 800m, accrued between 2020 and 2022.
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