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Rolls-Royce to cut 2,300 jobs
2008/01/14 11:22 (Beijing - China)
Source:

    British aerospace firm Rolls-Royce announced plans on Friday to cut up to 2,300 jobs to reduce costs and improve efficiency.

    The job losses come as the firm seeks to ward off the impact of high raw material prices and a weak U.S. dollar.

    A spokesman for Rolls-Royce said the main reason for the job cuts was to increase productivity, but added that soaring energy and metals prices had hurt the company's bottom line.

    A weaker U.S. dollar is also a challenge, as the firm's manufacturing costs are largely in sterling but it sells in dollars. The pound hit a 26-year high against the dollar last year.

    The firm said the cuts will affect the company's operations in Britain, the United States, Germany and the Nordic countries.

    Rolls-Royce employs about 39,500 people in 50 countries, with 23,300 in Britain, where operations include plants in Derby, Bristol and East Kilbride. The company declined to say how many jobs would be lost in Britain.

    The job cuts, which represent just under 6 percent of the firm's global workforce, will affect managerial, professional and clerical staff.

    The Unite union said the job cuts were disappointing given the firm's healthy order book.


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