Lawyers are likely to be among the 2,500 Rolls-Royce staff whose jobs were today put at risk as part of a company-wide reorganisation.

The engineering giant will make a series of consolidations across the business to improve efficiency and reduce costs, the company announced to the London Stock Exchange. It aims to create a simpler, more streamlined business 'removing roles which are duplicated or too costly'.

The proposals include creating a new cross-company procurement and supplier management organisation. So-called ‘enabling functions’, which include financial, HR and legal, will be brought together across Rolls-Royce to standardise activity and provide shared support.

Rolls-Royce

The engineering giant will make a series of consolidations across the business

Source: Alamy

It is unclear at this stage how many legal jobs would be affected as part of the 2,000-2,500 roles that will be affected globally.

The next phase of the organisational development will take place over the coming weeks through to January 2024, so the company does not yet know where many of the proposed reductions will be based.

Tufan Erginbilgic, chief executive, said: ‘We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders. Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success.’

A spokesperson for Rolls-Royce said the company is working with  employee representatives throughout the process and will continue to keep them and the employees updated as it completes the proposed business design. 

Shares in Rolls-Royce Holdings plc rose by 1.5% today following the announcement.

 

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