Aircraft engine maker Rolls-Royce is cutting at least 9,000 jobs because of the collapse in demand for air travel caused by the coronavirus pandemic.
"We are proposing a major reorganization of our business to adapt to the new level of demand we are seeing from customers," the company said in a statement on Wednesday. "As a result, we expect the loss of at least 9,000 roles from our global workforce of 52,000."
Rolls-Royce (RYCEF) said its civil aerospace business, which is concentrated in the United Kingdom and makes engines for Boeing (BA) and Airbus (EADSF) planes, will bear the brunt of the restructuring.
"We haven't completely concluded on exactly where the job losses will be because we have to consult with our unions, but it's fair to say that of our civil aerospace business, approximately two thirds of the total employees are in the UK at the moment," CEO Warren East told BBC radio on Wednesday.
The company said it will take several years for the commercial aerospace market to return to the levels seen just a few months ago and it needed to adjust its capacity to meet the reduced demand.
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