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Rolls-Royce to Axe 3,500 Jobs
BBC ^ | October 14, 2001

Posted on 10/14/2001 6:04:43 AM PDT by Merovingian

Rolls-Royce, the company which makes engines for aircraft, is likely to announce up to 3,500 job cuts this week as it reels from the slowdown in aviation following the 11 September attacks, newspapers say.

The group is also thought to be planning a profit warning, as airlines around the world slash orders and cut back services.

The US aircraft giant Boeing is also expected to issue a warning this week.

It has already warned that it is to cut about 12,000 positions by mid-December, with perhaps 30,000 in all set to lose their jobs.

In September it told investors that it was "too early to determine the effects these events will have".

But now, according to a number of papers, it is time for the company to come clean.

According to the Sunday Times, the cuts will probably hit the group's 14,000-worker plant in Derby, in the UK's East Midlands.

Falling profits

Rolls-Royce was already suffering before 11 September, with profits dipping to £190m in the first six months of 2001 in what the company called a "challenging market".

A £150m restructuring plan was announced last year, along with other cuts in staffing.

And in early October Merrill Lynch - Rolls-Royce's broker - cut its forecasts for the company's profits by 37% for 2002 and 28% for 2003.

The company's involvement in the military, marine and energy markets are thought to make it better protected from the downturn than some of its peers, the Sunday Times says.

TOPICS: Business/Economy; News/Current Events
1 posted on 10/14/2001 6:04:43 AM PDT by Merovingian
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To: Merovingian
Oh heck, just as I was gonna go out and buy one.
2 posted on 10/14/2001 6:48:25 AM PDT by cajungirl
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To: cajungirl
LOL....I knew at least ONE Freeper would have that problem...
3 posted on 10/14/2001 7:59:59 AM PDT by Merovingian
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