British aircraft engine maker Rolls-Royce announced that it will cut at least 9,000 jobs due to air traffic paralysis caused by the new coronavirus pandemic. ” We are proposing a major reorganization to accommodate the new level of customer demand ,” CEO Warren East said in a statement. “ As a result, we expect the loss of at least 9,000 jobs from our global workforce of 52,000, ” he added. The jobs to be cut, which represent 17% of the workforce, and will have an impact on civil aviation activities and the administrative sector, but not on the defense division, it was indicated.
It is ” increasingly clear that the commercial aeronautics market will take years to recover to the level of a few months ago ,” the statement added. ” Our aviation and aeronautical customers must adapt, and so must we ,” says Warren East , the CEO, quoted in the statement. ” Governments do what they can to support companies in the short term,” but “they cannot permanently replace customer demand that does not exist, ” he added.
The airline sector is one of the most affected by the pandemic, which has caused border closings and severe containment measures. In the United Kingdom , British Airways , Virgin Atlantic and Ryanair, among other companies, announced in recent weeks the abolition of thousands of jobs. British transport minister Grant Shapps said Monday that 43,500 workers were temporarily unemployed in the aviation sector due to COVID-19, to which 2,600 are added at airports. In 2018, Rolls-Royce had already cut 4,600 jobs, mainly in the administrative sector. In 2019, the firm managed to reduce its net loss thanks to better commercial results, despite the problems of the Trent 1000 engine, which has been sinking its accounts for years.