Engine-maker Rolls-Royce to cut 2,600 jobs

AP News
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Posted: Nov 04, 2014 12:45 PM

LONDON (AP) — Airplane engine-maker Rolls-Royce Holdings PLC says it will reduce its staff by 2,600 over the next 18 months as part of a restructuring focused on its aerospace decision.

The group warned last month that the tough economic climate meant it would have to increase its focus on costs. Chief Executive John Rishton said that the measures announced Tuesday "will not be the last."

Rolls-Royce employs more than 55,000 people in 45 countries, almost 25,000 of them in Britain. It manufactures engines for civilian and military ships and aircraft, as well as turbines for power plants.

It is not affiliated with the Rolls-Royce automobile brand, which is owned by Germany's BMW.

Rolls-Royce shares closed 1.5 percent higher Tuesday at 848 pence ($13.56) on the London Stock Exchange.