Rolls-Royce will cut 9,000 roles from global workforce. Credit: Mark Hillary.

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Aero engines manufacturer Rolls-Royce has revealed plans to axe 9,000 jobs from its global workforce to deal with the reduction in engine and service demand due to Covid-19.

The decision is part of the company’s major reorganisation plan to adapt to the new level of demand.

The company will also cut down on costs across its facilities and property, capital and other indirect expenditure.

The workforce reduction is expected to contribute around £700m of the total £1.3bn annualised savings likely to be generated from the proposed reorganisation.

The cash restructuring costs related to these actions would be around £800m.

Rolls-Royce CEO Warren East said: “Our airline customers and airframe partners are having to adapt and so must we.

“Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce. But we must make difficult decisions to see our business through these unprecedented times.

“Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there.

“We have to do this right, which means we will work closely with our employee and trade union representatives as appropriate, look at any viable alternatives to mitigate the impact, consult with everyone affected and treat our people with dignity and respect.”

The proposed reorganisation will mainly impact the company’s Civil Aerospace business.

However, the internal Civil Aerospace supply chain will keep on supporting its defence programmes.

The company is required to consult with the applicable employee and trade union representatives.