Rolls-Royce: Yorkshire MP's concern as firm prepares to axe up to 2,500 jobs across business

The aerospace engineering specialist which currently employs 42,000 people, said it also plans to remove “duplication” and deliver cost efficiencies through the latest stage in its transformation plan.

Rolls-Royce did not disclose where the job cuts will take place but around half of its current workforce are based in the UK.

The company has a presence in South Yorkshire with its Factory of the Future at the Advanced Manufacturing Research Centre.

Rotherham MP Sarah Champion said on X, formerly Twitter, that news of the job cuts plan was “concerning” and more details are needed about where roles will be removed.

The company’s plan will include creating a new procurement division in order to reduce costs by leveraging the group’s scale.

It also said that some back-office operations, such as human resources and finance, will be brought closer together as part of the shake-up of operations.

Mr Erginbilgic said he believes the planned changes will result in long-term improvements for the company and its customers.

“We are building a Rolls-Royce that is fit for the future,” he said.

"That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders.

“Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success.

“This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce.”

The new boss had been expected to reveal a significant shake-up involving job cuts after describing Rolls-Royce’s performance as “unsustainable” earlier this year.

The former BP executive told staff in January there was a “last chance” to change, according to a briefing seen by the Financial Times.

The latest cuts come after it axed around 9,000 jobs shortly after the pandemic after first starting its transformation plan in order turn its finances around.

Annual underlying revenue was £12.69 billion in 2022, and underlying operating profit was £652m.

Richard Hunter, Head of Markets at interactive investor, said news of the changes had been “well-received” by the markets, with a slight rise in share price recorded on Tuesday morning following the announcement to the London Stock Exchange of the plan.

He said: “A strategic overhaul at Rolls-Royce which will result in the global loss of 2,500 roles was well-received given savings which could amount to up to £200 million.

"The shares have had a stellar year so far, rising by more than 130 per cent, as any number of factors have played into the company’s hands, not least of which has been the return to airline travel.”