Home Business NewsBusinessAviation Rolls-Royce records £5.4bn loss with 5,000 jobs to go this year

Rolls-Royce records £5.4bn loss with 5,000 jobs to go this year

by LLB staff reporter
27th Aug 20 10:55 am

Rolls-Royce has recorded a half year loss in the first six months of £5.4bn due to air travel plummeting amid the pandemic.

The engine maker plan to sell off part of their business to raise £2bn to boost their balance sheet in an attempt to strengthen their finances after seeing an “unprecedented” slump in the industry.

In May the company announced they are to cut 9,000 jobs globally and 5,000 of those jobs will be lost by the end of the year.

On Wednesday Rolls-Royce announced plans to close their aerospace factory in Annesley, Nottinghamshire, and merge sites in Lancashire.

Chief executive Warren East said, “The Covid-19 pandemic has significantly affected our 2020 performance, with an unprecedented impact on the civil aviation sector with flights grounded across the world.

“We have made significant progress with our restructuring, which includes the largest reorganisation of our civil aerospace business in our history.

“This restructuring has caused us to take difficult decisions resulting in an unfortunate but necessary reduction in roles.”

He added, “In light of ongoing uncertainty in the civil aviation sector, we are continuing to assess additional options to strengthen our balance sheet to enable us to emerge from the pandemic well placed to capitalise on the long-term opportunities in all our markets.”

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