Engine manufacturer Rolls-Royce is to merge its engineering and safety functions as it looks to create a more efficient company by shedding around 5% of its global workforce.
The UK-based firm has appointed current director of product development and technology civil aviation Simon Burr to head up the merged division and join the executive team.
Meanwhile, it was announced that chief technology officer Grazia Vittadini will be leaving the business in April 2024.
The planned job losses will not impact engineering roles and will be concentrated in back office functions to improve efficiencies and “create a more agile business”.
Rolls Royce said it plans will create a “simpler, more streamlined, organisation in the next phase of its multi-year transformation”.
The firm added: “The new structure will create a more agile business that is better able to serve customers and continue to create and maintain world-class products.
“It will help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are as strong as the company’s engineering and technical excellence.
“The changes being proposed will also remove duplication and deliver cost efficiencies. Our tight management of costs and headcount through 2023 has ensured that we have minimised the overall reduction in headcount.”
Up 2,500 roles will be removed globally from among the 42,000 people Rolls Royce employs worldwide.
The firm said: “We would like to thank Grazia for her contribution to the company. The proposals include creating a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend, leverage scale and develop consistent best-in-class standards.
“As well as delivering savings, a greater focus on these key areas will lead to improvements in customer service, reducing supply chain delays.
“Enabling functions, such as finance, general counsel and people will also be brought together across Rolls-Royce, standardising activity and providing shared support to capture synergies and scale to achieve greater effectiveness.”
Chief executive Tufan Erginbilgic said: “We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders.
“Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey to build a high performing, competitive, resilient and growing Rolls-Royce.”