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9,000 Rolls-Royce jobs to go

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9,000 Rolls-Royce jobs to go

Old 20th May 2020, 08:13
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9,000 Rolls-Royce jobs to go

Coronavirus: Rolls-Royce to cut 9,000 jobs amid virus crisis
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Old 20th May 2020, 10:59
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This is the "ripple effect" of the Covid saga and, of course, this will spill over into 3rd party suppliers and on through the supply chain and the supporting economies (shops, pubs etc where workers spend their wages). Very, very worrying.

From the above link, "Unite the union said the decision was "shameful opportunism".", it's clear that the Govt should have explained better what the aim of furlough money is/was, namely to keep people paid whilst the country is in "lockdown" so they could resume their work immediately when the lockdown ends. Of course, that's assuming each persons' business sector hasn't tanked in the mean time (ie work would effectively pick up where it left off).

For the lucky ones, that will be the case. For many, particularly in (or related to) aviation, this is but one of many aftershocks which will follow the implosion of flying. It's how the subsequent downsizing is handled - that's where opportunism can come in as highlighted in the BA Restructuring thread where that is discussed in detail! And how it will end is also another of the great debates regarding the length of the downturn.

All in all really sad to see and thoughts go out to all those who may be impacted. Truly a most unwanted epoch is upon us all.
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Old 20th May 2020, 11:42
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Very sad news. Highly trained, skilled and experienced people being thrown away.

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Old 20th May 2020, 12:16
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Nobody is buying airliners so nobody is buying engines. A huge chunk of RR revenue comes from maintenance and service, that has also almost completely stopped over past few months. Doubt that these folk are being "thrown away," more like laid off until people start actually using and buying engines again.
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Old 20th May 2020, 12:56
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Bad news but I honestly cannot see what else RR can do - if nobody is buying your product you have to downsize to a point where you can survive. Hopefully RR can survive in the new reality.
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Old 20th May 2020, 13:27
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By having the "Power by the Hour" operation of many airlines' engines, obviously if no flying then no money coming in, or certainly very reduced flying/money.
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Old 20th May 2020, 14:47
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I would like to liken this to a trickle down effect, but it's more of a landslide

RR can't sustain their workforce which is really due to the airlines not flying, which is due to the lockdown effect between states. In hindsight this may have been mitigated within an industry by a broad diversification, but it's too late for that. Others are sure to follow until governments run out of money.

Some hard decisions are needed soonest by the public
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Old 20th May 2020, 16:36
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When Rolls Royce start laying off we really do have a problem. Some of the finest Engineers in the UK.
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Old 20th May 2020, 19:04
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Hello Dave,

I didn't think it would be good news regarding the job losses per my post on the 3rd May.
What about the reps working for RR around the world in the private jet world with RR powered frames?


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Old 20th May 2020, 20:38
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Sad news but not just Corona related is it?
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Old 20th May 2020, 21:10
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Originally Posted by Less Hair View Post
Sad news but not just Corona related is it?
Hmmm.

From the linked article:

This morning's job losses are hardly unexpected - airlines have cut their flying hours by 90% or more, and Airbus and Boeing have slashed their production numbers for the next few years

Air travel has ground to a virtual standstill since the coronavirus began spreading across the world and many airlines have announced steep job cuts.

Global air traffic is expected to decline by 45% this year, according to investment bank Baird. It also forecasts that airlines are expected to lose $310bn (£253bn) in revenue in 2020.

Rolls-Royce said the impact of the pandemic on the company and the whole of the aviation industry "is unprecedented".

It added that it is "increasingly clear that activity in the commercial aerospace market will take several years to return to the levels seen just a few months ago".
Does that help ?
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Old 20th May 2020, 22:54
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Published Nov 2019

The​ bill to fix Rolls-Royce’s Trent 1000 engine has risen by another 800 million pounds ($1 billion) as the aerospace group battles to reduce disruption to airline customers that have had to ground Boeing 787 passenger planes for repairs.

The British engineer said on Thursday its operating profit and cash flow this year would come in at the bottom of its guidance - both at about 600 million pounds - as the cost of the Trent 1000′s problems rose to 2.4 billion pounds for 2017-2023.

Chief Executive Warren East said Rolls would spend more on parts and replacement engines to reduce the time aircraft are grounded while turbine blades are replaced.

“We want to get planes back into the skies faster, giving (airlines) much better visibility of when engines need to be serviced and better confidence in scheduling, and providing clarity to investors,” he told reporters.

He said the plan meant Rolls could keep its promise of reducing the number of aircraft on the ground to single digits by the second quarter of 2020 and maintain it at that level.

The Trent is one of two engine options for the 787, which can also be powered by rival GE Aviation’s GEnx engines.

Emirates President Tim Clark said in September he was “a little bit irritated” with reliability issues at Rolls and GE, adding he would not commit to ordering 787s as there was no stability in Rolls’ engine program.
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Old 20th May 2020, 23:24
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At least the Corona related slowdown will allow Rolls to get caught up on the Trent 1000 issues.
I had beer with a former co-worker back in January - she was involved in the Trent 1000. She told me they still had ~35 Trent powered 787s grounded because they didn't have engines.
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Old 21st May 2020, 00:59
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True

Yeah, engineers who were based near Berlin at RR got fired. Hope aviation recovers rapidly...
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Old 21st May 2020, 06:27
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Originally Posted by tdracer View Post
I had beer with a former co-worker back in January - she was involved in the Trent 1000. She told me they still had ~35 Trent powered 787s grounded because they didn't have engines.
I can believe that.

One of British Airways' B789s hasn't flown since September of last year.
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Old 21st May 2020, 07:49
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Wondering did the Nimrod MRA4 cancellation initiate all their problems?
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Old 21st May 2020, 10:56
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Originally Posted by Less Hair View Post
Wondering did the Nimrod MRA4 cancellation initiate all their problems?
I can't see that having much effect on RR.
The BR700 series engines are widely used on various other aircraft such as Gulfstreams, B717 etc.
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Old 21st May 2020, 12:36
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Originally Posted by Less Hair View Post
Wondering did the Nimrod MRA4 cancellation initiate all their problems?
The biggest profit line is after market support. Even if no new engines are shipped they still make money (for awhile) as long as planes are flying between overhauls
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Old 21st May 2020, 12:48
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I see RR are in te contest to provide 600 + engines to re-engine B-52s. I expect they'll have a very sharp pencil.
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Old 21st May 2020, 12:52
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How much revenue can power-by-the-hour contracts generate when entire fleet are grounded?
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