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The luxury British car company Rolls-Royce announced plans to cut 2,500 jobs around the globe in an attempt to make the company “more efficient and effective.” This is the first major move made by Tufan Erginbilgic since becoming CEO of the organization back in January.
Rolls-Royce did not specify what parts of the world would be impacted by these job cuts. Reports suggest that hundreds of U.K.-based workers will be affected by these reductions, according to BBC News. The organization’s submarine division in Derby, England will likely be unaffected by the cuts. However, operations in Germany, where the company employs 11,000 people, are expected to be badly hurt by these layoffs.
Sharon Graham, the general secretary for Unite the Union, a British and Irish trade union with over 1.2 million members, said that Rolls-Royce staff would have to wait three months before finding out if their jobs were safe.
"This announcement appears to be about appeasing the markets and its shareholders while ignoring its workers. Attempting to bypass unions will not be allowed," she said. "This approach only serves to create more stress and uncertainty, and Unite will be seeking reassurances on jobs."
The engine manufacturer said that it must first begin negotiating and working with unions before the company can make any more announcements on the matter.
Rolls-Royce employs 42,000 people around the globe, with about half of their workers based in the U.K. Derby, England is home to 13,700 Rolls-Royce employees. Another 3,400 workers are based in Bristol. Smaller pockets of staff are also located in Lancashire, Glasgow, Tyne & Wear and Rotherham.
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