Rolls-Royce has unveiled plans to eliminate as many as 2,500 jobs globally in a bid to establish a "more efficient and effective" company.

This marks the first major action taken by Tufan Erginbilgic, who assumed the role of chief executive in January, characterizing Rolls-Royce as a "burning platform."

The company, a manufacturer of aircraft engines, is headquartered in Derby and has a global workforce of 42,000 employees, with roughly half of them in the UK.

During the pandemic, when air travel was largely grounded for several months, Rolls-Royce faced significant challenges.

While Rolls-Royce did not specify the locations of the job cuts, reports indicate that hundreds of positions in the UK will likely be impacted.

The engineering company has stated its intent to collaborate with unions before making further announcements.

Rolls-Royce currently employs 13,700 people in Derby and 3,400 in Bristol.

The company explained that these planned changes are aimed at "eliminating duplication and achieving cost efficiencies."

"We are constructing a Rolls-Royce that is prepared for the future," stated Mr. Erginbilgic.

"This entails creating a more efficient and streamlined organization that will deliver results for our customers, partners, and shareholders."

Rolls-Royce grappled with financial difficulties during the Covid pandemic, having to raise billions of pounds to sustain its operations. In 2020, the company cut 9,000 jobs.

Upon assuming leadership at Rolls-Royce, Mr. Erginbilgic, a former executive at the oil giant BP, informed employees that the company's performance was "unsustainable."

As part of the new initiatives, Rolls-Royce will merge its engineering technology and safety teams, with Chief Technology Officer Grazia Vittadini stepping down.

The company also aims to enhance its procurement and supply chain management processes to reduce expenses. Finance, legal, and human resources teams will be consolidated across the group.

"This represents another phase in our multi-year transformation journey to establish a high-performing, competitive, resilient, and expanding Rolls-Royce," Mr. Erginbilgic noted. Photo by Dave Bevis, Wikimedia commons.