Wednesday, May 27, 2020

News: Big names announce job losses


Rolls-Royce and McLaren, two of the marquee manufacturers that have operations in Rotherham, have both announced large scale job losses.

Rolls-Royce's reorganisation is expected to result in the loss of at least 9,000 roles and McLaren's corporate restructure process is expected to result in around 1,200 redundancies.

The location of any redundancies has not yet been announced.

Derby-based Rolls-Royce said that due to COVID-19, activity in the commercial aerospace market will take several years to return to the levels seen just a few months ago.

With a global workforce of 52,000, the proposed reorganisation is expected to generate annualised savings of more than £1.3bn. Expenditure across plant and property, capital and other indirect cost areas will also be cut.

The proposed reorganisation will predominantly affect the firm's Civil Aerospace business, where it will carry out a detailed review of its facility footprint.

Fully operational in 2017, Rolls-Royce's £110m facility on the Advanced Manufacturing Park (AMP) in Rotherham is the most advanced turbine blade casting facility in the world. The 150,000 sq ft facility employs over 150 people.

Warren East, CEO at Rolls-Royce, said: "This is not a crisis of our making. But it is the crisis that we face and we must deal with it. Our airline customers and airframe partners are having to adapt and so must we. Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce. But we must take difficult decisions to see our business through these unprecedented times."


McLaren Group has recently commenced a proposed restructure programme as part of a wider business plan to ensure its long-term future success.

McLaren has been severely affected by the current pandemic. Bosses said that the cancellation of motorsport events, the suspension of manufacturing and retail activities around the world and reduced demand for technology solutions have all led to a sudden impact on the Group's revenue generating activities.

Subject to employee consultation, the proposed restructure is expected to result in around 1,200 redundancies across the Group's Applied, Automotive, and Racing businesses, as well as support and back office functions.

The £50m McLaren Composites Technology Centre (MCTC) was opened on the Advanced Manufacturing Park (AMP) in 2018. It manufactures lightweight carbon fibre "tubs" and other carbon fibre components for supercars.

Just last November the Woking firm announced that it would be doubling the workforce at the MCTC to over 200 by the time it is in full production in 2020.

Paul Walsh, executive chairman of the McLaren Group, said: "We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected. It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business. But we now have no other choice but to reduce the size of our workforce.

"This is undoubtedly a challenging time for our company, and particularly our people, but we plan to emerge as an efficient, sustainable business with a clear course for returning to growth."

Rolls-Royce website
McLaren website

Images: Google Maps


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