As part of Rolls Royce Holdings' transformation plan and strategic evaluation initiative, the company will lay off 2000-2500 employees globally.
The British aircraft engine manufacturer stated on Tuesday that the new architecture will make the company's business more flexible, better serve customers, improve cost efficiency, and help the company enhance its capabilities in procurement, supply chain management, and other fields. The company announced the aforementioned evaluation plan in January of this year.
Rolls Royce's engineering and safety teams will be merged into one team responsible for product safety, engineering standards, processes, methods, and tools. The merged team will be led by the current Director of Civil Aviation Product Development and Technology, Simon Burr, who will join the company's leadership team with immediate effect. Internal auxiliary functional departments such as finance, general legal advisor, and personnel team will also be merged.
Grazia Vittadini, the company's chief technology officer, will resign in April next year.
Other options include creating a new enterprise wide procurement and supplier management organization to support group expenditure integration, leverage scale advantages, and establish consistent standards. In addition to saving costs, more attention to these areas will also improve customer service and reduce supply chain delays.
Rolls Royce currently has 42000 employees worldwide.