Rolls axes another 2,300 jobs

Jan 12 2008 by Alistair Houghton, Liverpool Daily Post

ROLLS-Royce is to axe another 2,300 jobs in the UK, Europe and US as it continues its cost-cutting drive.

Last November the group announced it planned to close its Netherton factory, which makes turbines for the oil and gas industries, with the loss of more than 200 jobs.

Announcing the latest cuts yesterday, the group declined to confirm how many jobs in the UK would disappear, but said it would seek to secure voluntary redundancies where possible.

Rolls-Royce employs around 23,300 people in the UK in locations including Derby and Bristol.

The engineering firm said managerial, professional and clerical roles would be affected.

It said the headcount reduction would help it offset higher costs in raw materials as well as the weak US dollar,

The group said on unveiling half-year results in July that the decline in the strength of the dollar had cost it an extra £40m, while it was also seeing a rise in unit costs from raw materials.

The exchange rate was one of the reasons given for plans to close the Netherton plant.

The company launched a 90-day consultation and a final decision is due by the end of the month.