Job losses in the aero engine industry reached almost 12,000 on 19 October when Rolls-Royce became the last of the 'Big Three' manufacturers to announce a cut in its workforce. Although it is the smallest of the three companies, Rolls-Royce has announced the biggest reduction in employee numbers.
The UK company expects its civil aerospace sales to slump by 25% next year compared with forecasts and is cutting 5,000 of the workforce as a result. Engine deliveries are expected to decline 30% next year.
Rolls-Royce says that although "there has been no significant impact from deferments or cancellations of aircraft" as a result of the events of 11 September, it needs to reduce its cost base more drastically than previously thought due to anticipation of order cancellations next year.
The company is to cut 3,800 jobs in the UK and 1,200 between its US and German operations, some 8% of the total. The company had already announced the loss of 2,000 jobs from its aero engines division last month.
Rival United Technologies (UTC) is to cut up to 4,000 jobs from its aerospace businesses over the next year, citing the impact of the terrorist attacks. As many as 2,500 jobs, just over 8% of the workforce, will be cut at Pratt & Whitney and a further 1,500 jobs, almost 9% of the total, will be cut at systems supplier Hamilton Sundstrand.
Earlier this month GE Aircraft Engines revealed plans to lay off 4,000 employees, or 13% of its workforce worldwide.
The impact is rapidly flowing down the supplier chain. TRW Aeronautical Systems (Lucas Aerospace) has announced the elimination of 1,100 jobs, or 16% of the workforce.
Source: Flight International
