Britain's Rolls-Royce is slashing 4,600 jobs

Britain's Rolls-Royce is slashing 4,600 jobs

The cuts will be focused on management, administration and support roles in the United Kingdom with core engineering jobs expected to escape the efficiency measures.

"Our world-leading technology gives Rolls-Royce the potential to generate significant profitable growth", the company's chief executive Warren East said alongside Thursday's announcement.

Rolls-Royce has 55,000 employees worldwide of which 26,000 are in Britain and this reduction in staff follows previous job cuts under East, who joined the company three years ago with a mandate to turn it around. It employs around 19,400 engineers. Most of the job losses will be in the United Kingdom.

"Rolls-Royce announces the next stage in our drive for pace and simplicity with a proposed restructuring that will deliver improved returns, higher margins and increased cash flow", the group said in a statement.

Speaking to the BBC, East said he saw opportunities in China.

"A traditionally heavily centralised control culture will be replaced by empowered businesses, in a simpler, leaner structure with much clearer accountabilities".

Recent annual figures showed Rolls-Royce returned to profit a year ago with a pre-tax surplus of £4.9 billion, thanks to a £2.6 billion accounting boost from the recent strengthening of the pound.

The company said it will take a one-off financial hit of £500 million ($670 million) as a result of the restructuring.

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