Rolls-Royce to cut 2,600 jobs

The company said in a statement: "This is consistent with our announcement on October 17, when we committed to accelerate progress on the 4Cs: customer, concentration, cost and cash – particularly cost. We will continue to pursue further cost improvements in all areas, including in our Land & Sea division." Rolls-Royce CEO John Rishton added: "We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however, they will contribute towards Rolls-Royce becoming a stronger and more profitable company. "We will work closely with employees and their representatives to achieve the necessary reductions on a voluntary basis where possible, while making sure we retain the skills needed for the future." The company said restructuring actions – including the organisation of the group into two divisions, Aerospace and Land & Sea – would cost around £120million over the next two years, but that investment in technology and new capacity alongside the organisational changes had enabled it to increase output and improve efficiency.