British engine maker Rolls-Royce on Sunday denied reports that it plans to cut 3,000 jobs. The company said in a statement that it has made no decisions about its workforce and that any suggestion of job cuts is “pure speculation.”
The speculations came after the UK newspaper ‘The Sunday Times’ reported that the company’s chief executive Tufan Erginbilgic has hired consultants to help the company save money and become more efficient. The report also said that part of the plan would involve merging non-manufacturing departments in each of Rolls-Royce’s civil aerospace, defense and power systems divisions.
The company has now clarified: “We have made no decisions whatsoever on any potential impact on employees.” The company is currently undergoing a strategic review and it is expected to be completed in the second half of 2023.
Rolls-Royce, a major supplier of engines for both commercial and military aircraft, has been hit hard by the pandemic, which has led to a decline in air travel. The aero-engineering giant is also facing challenges from new entrants in the engine market, such as General Electric and Safran.
Rolls-Royce’s denial of job cuts comes at a time when several automobile companies have announced massive layoffs. While US carmaker Ford has cut 3,800 jobs in Europe, Stellantis and General Motors have together shelved 29,000 jobs in North America. Japanese carmakers Toyota and Nissan have announced termination of 3,000 and 12,500 employees respectively.
The automobile industry is undergoing a major technological transformation, which is leading to job losses in some areas. The total number of job cuts in the automotive industry in 2022 is estimated to be around 100,000. However, the number of job cuts in 2023 is expected to be even higher, as the industry continues to grapple with the aftermath of the pandemic, the war in Ukraine, and rising inflation.
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