Rolls Royce has announced plans to close its jet engine plants for civil aircraft for two weeks, a move that seeks to help cut losses. The plan will, however, not affect its defence or energy divisions.
It would be the first temporary shutdown for the firm since the 1980s when the firm was re-privatised. And although no date for the shutdowns has been set yet, the company aims to spread the wage hit through the year.
The company reports that it is shying away from a blanket use of the furlough scheme while continuing to use the UK Government Coronavirus Job Retention Scheme – and similar schemes elsewhere in the world – across areas of Civil Aerospace where workload has significantly reduced as a result of the coronavirus pandemic.
The engineering giant has suffered a drop in sales with fewer jets in the air requiring servicing. It is paid on the number of hours its engines are in use, so the Covid restrictions hit its revenues.
The company is already slashing billions of pounds in costs and expects £2 billion of cash to leave the business in 2021, more than double forecasts.
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