In the past few days, we’re talking about plenty of companies being hit because of the coronavirus pandemic. Only yesterday we spoke about Ola Cabs in India having to lay off 1,400 employees as their revenues were hit tremendously, with not a lot of people using their services over the last 2 months of the lockdown period.
It turns out, even the older companies are finding it difficult to co-exist along with the virus. Earlier this week, we spoke about JCPenney going bankrupt as well, in the business for over a century. After India and America, it’s now time for some similar business news from Britain, as UK engineering company and automobile manufacturer Rolls Royce is the latest to hit the headlines.
Another company which has been around since over a century, Rolls Royce was founded in 1904 and yesterday, they went on to announce the loss of 9,000 jobs around the UK, which is almost 1/5th of its total workforce of 52,000 around the world. This reduction will be their biggest one since the last three decades.
The company manufactures aero-engines and with the fall in the aviation industry and no one around the world really travelling, this move was expected. The restructuring is expected to include a factory closure and is expected to help them save at least around £1.3bn. The announcement was made on Wednesday and will help the company prepare for the future.
“We are trying here to protect jobs for the future. This isn’t about our liquidity, this is about protecting this vital capability that we have. We have to ensure the medium-term viability of our business,” said Warren East, chief executive officer of Rolls-Royce Holdings. Half of the job cuts are expected to be implemented this year itself and you can keep watching ReadScoops.com for more updates…
