Summary

  • More than 4,000 jobs to be lost at Rolls-Royce

  • Derby engineering base expected to be hit hard

  • Cuts expected to focus on middle management and back office staff

  • Two-year timescale on job losses - third of cuts expected by end of 2018

  • Rolls-Royce chief says compulsory redundancies 'inevitable'

  • Company claims restructuring will save £400m a year

  • Unite union warns of 'dire consequences' for communities

  • Latest updates for Thursday 14 June 2018

  1. Analysis: Job losses a hammer blow for Derbypublished at 13:33 British Summer Time 14 June 2018

    Simon Jack
    BBC Business Editor in Derby

    This really is a hammer blow for the work force here and also the city of Derby.

    Rolls-Royce

    Everyone you speak to has a family member or friend who works here and is really proud to do so.

    Rolls-Royce has had its share of problems in recent years, it had a string of profit warnings, it lost billions in 2016, a new chief executive came in and righted that ship in terms of profit.

    But now he has decided he needs to lighten that load.

    He says Rolls-Royce has to be much more profitable and unless that happens there will not be the jobs here for future generations of people and families in Derby to go to.

    However that is not much comfort to people in the here and now who have got to find themselves another job.

  2. Rolls-Royce cuts 'changes mood of Derby'published at 13:12 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    There appears to be widespread concern across Derby at Rolls-Royce's plans to cut thousands of jobs in the city.

    Alex Nix

    Alex Nix, who was out shopping, said: "I think it will definitely change the mood of the city... it is an important place.

    "A lot of young people also are not going to have a lot of confidence in waiting for a job at Rolls-Royce.

    "It might force them to look elsewhere for work which will in turn cost them more money just in travel probably."

  3. Rolls-Royce cuts create 'competition' in jobs marketpublished at 13:03 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    With many Rolls-Royce staff in Derby soon to be looking for alternative employment, there's concern that vacancies locally will be oversubscribed.

    Rolls-royce signImage source, Reuters

    Jade Charlton, from Ilkeston, said: "For people applying for other jobs, it could mean a lot of competition, especially in the manufacturing industry around here."

    Stephen Woodiwiss added: "With them [Rolls-Royce] cutting jobs, it will be hard for people to find jobs in this area.

    "People do struggle from day-to-day to find jobs all over."

  4. Rolls-Royce job cuts 'will hit Derby hard'published at 12:48 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    The news of job losses at Rolls-Royce has been met with shock across Derby, where the company employs thousands of people.

    Rob Corden

    Rob Corden, a greengrocer at the city's Guildhall Market, said: "I feel sorry for the people that are going to lose their job.

    "Rolls-Royce is a great employer, it offers great benefits, a great wage and it is a stable environment for people working.

    "Hopefully they [the job losses] will come via people who volunteer for redundancy.

    "It is going to have a knock on effect to Derby... the income drop, it is going to hit us."

  5. Rolls Royce cuts: 'New jobs and training to be offered'published at 12:33 British Summer Time 14 June 2018

    Heather Burman
    Journalist, BBC News Online

    Business secretary Greg Clark told parliament the government would make sure new jobs and training opportunities would be offered in the "expanding manufacturing sector in the East Midlands".

    He said: "The skills that exist in the employees whose jobs are under threat are valuable skills.

    "The fact that they may be in management does not mean to say they are not highly valued, in an economy nationally and in the East Midlands that has a great demand for those skills."

  6. Job cuts Rolls-Royce's bid to remain 'world leading'published at 12:13 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    A former shadow minister at the Department for Trade and Industry suggests the job cuts at Rolls-Royce are necessary for it to remain "world leading".

    Cheryl GillanImage source, House of Commons TV

    Speaking in the Commons, Cheryl Gillan, said: "Isn't it true that they [Rolls-Royce] announced their restructuring programme in January of this year and this was followed by very good year end results in March.

    "Isn't it absolutely necessary that with a company such as Rolls-Royce... that it now restructures itself so it is simplified and has the agility and pace to remain one of our world leading industrial technology companies."

  7. Rolls-Royce cuts: Firm to continue to recruit engineerspublished at 12:09 British Summer Time 14 June 2018

    Heather Burman
    Journalist, BBC News Online

    Business secretary Greg Clark said Rolls-Royce had told him they will continue to recruit engineers, technicians and apprentices.

    But he said the government would work closely with the firm, unions and councils "to ensure each and every worker is supported in finding new work".

    Rolls-Royce Victory Road

    He said: "We will continue to support a company and an industry we can be proud of and our biggest contribution will be to ensure that everyone in Derby and across Britain is able to benefit from a growing, modern economy that creates good jobs now and long into the future, so that when jobs are lost, people can find new ones to support themselves and their families."

  8. Rolls-Royce to work on Trent 1000 problemspublished at 12:07 British Summer Time 14 June 2018

    Dave Wade
    BBC News

    Boeing 787 DreamlinerImage source, Reuters

    Rolls-Royce has said it will continue to work on the problems with its Trent 1000 engine which powers the Boeing 787 Dreamliner jet and were designed and developed in Derby.

    Parts in the engines have been wearing out faster than anticipated, causing some planes to be grounded.

    The firm has saidit will take years to modify all the enginesin service.

  9. Rolls-Royce staff 'highly skilled'published at 11:53 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    A Conservative MP points out that many of the people who are going to lose their jobs at Rolls-Royce have "highly transferable skills".

    Philip HolloboneImage source, House of Commons TV

    Philip Hollobone, MP for Kettering, tells the Commons: "Here we have Rolls-Royce, which is profitable, with a growing order book and it would seem it is making these job losses to become more efficient.

    "It would seem from what the Secretary of State [Greg Clark] is saying, that a lot of those who are going to lose their jobs have very highly transferable skills."

  10. Rolls-Royce cuts: Firm will need 'more manufacturing staff'published at 11:53 British Summer Time 14 June 2018

    Heather Burman
    Journalist, BBC News Online

    Business secretary Greg Clark told Parliament he spoke to Rolls-Royce chief executive Warren East yesterday, who explained to him that the "company's view is that the job losses are a necessary part of a drive to make the business more efficient and therefore more competitive".

    Rolls-Royce workerImage source, Getty

    Mr Clark said: "The jobs are principally in management and corporate support facilities rather than engineering and operational roles.

    "Rolls-Royce has informed me that the announcement does not reflect a reduction in growth by the company, indeed the reverse.

    "Rolls-Royce has a growing order book of over £170bn and Mr East told me that they will need more staff in the manufacture of components and assembly to meet that demand."

  11. Workers should have seat on Rolls-Royce board, MP sayspublished at 11:43 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    Chris Williamson, the Derby North MP, uses the urgent question on the job cuts at Rolls-Royce to question the make up of the company's board.

    Chris WilliamsonImage source, House of Commons TV

    He said "Isn't it time we saw the government legislating to have workers on the boards of companies so that there is someone to represent the interests of the workforce.

    "At the moment we are seeing expanding order books and yet the workforce is diminishing."

  12. Rolls-Royce job cuts 'a blow,' says governmentpublished at 11:34 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    Business secretary Greg Clark has admitted the announcement of job cuts at Rolls-Royce will be "very worrying" for people in Derby.

    Greg ClarkImage source, House of Commons TV

    He told the Commons: "Although the company will embark on a statutory consultation with staff, it is obvious that this news will come as a blow to the workforce and that this is a very worrying time for their dedicated and talented employees."

  13. Parliament discussing Rolls-Royce job cutspublished at 11:26 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    House of Commons tweets...

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  14. Derby MP 'to quiz government over job cuts'published at 11:07 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

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  15. Rolls-Royce and Derby: A historypublished at 10:59 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    Rolls-Royce's link to Derby is something that dates back to the early 20th Century.

    Andrew Marr in the Silver Ghost
    • The firm moved to Nightingale Road in Derby in 1907 where it built the Silver Ghost car (pictured), dubbed "the greatest car in the world".
    • The Marble Hall building was constructed as offices in 1912, with the hall itself converted in the 1930s.
    • The site was camouflaged during World War Two to protect the manufacture of Merlin engines, which powered Spitfires, Lancaster bombers and Mustangs.
    • Rolls-Royce moved from the site in 2007 to various other areas of Derby.
    Rolls Royce site in DerbyImage source, Reuters
  16. Rolls-Royce cuts: 'Deeply disturbing news for Derby'published at 10:38 British Summer Time 14 June 2018

    Press Association

    Shadow business secretary Rebecca Long-Bailey said the job cuts at Rolls-Royce were "deeply disturbing news for Derby".

    Rebecca Long-Bailey

    She said: "There is a real risk that redundancies of this scale will have a detrimental effect not just on the lives of workers and their families but on the future of skills in this much-needed sector and the health of the local economy.

    "Today they must provide significant support for employees and discuss with local leaders in Derby what measures they will take to directly support a reinvigorated local industrial strategy.

    "It is also imperative that the company honours previous commitments to no compulsory redundancies."

  17. Rolls-Royce share price risespublished at 10:25 British Summer Time 14 June 2018

    Chris Doidge
    BBC Radio Derby political reporter

    The markets have welcomed the Rolls-Royce announcement this morning.

    Rolls-Royce share price tracker

    Shares are up 2.7% at the moment.

  18. 'Slimmer' Rolls-Royce 'good in long run'published at 10:25 British Summer Time 14 June 2018

    Heather Burman
    Journalist, BBC News Online

    Nicholas Hyett, equity analyst at Hargreaves Lansdown, said a "slimmer, more efficient Rolls-Royce" would be good for UK aerospace in the long run.

    Although he added that the "job losses along the way mean the journey comes with a cost".

    The firm has announced it is shedding 4,600 jobs as part of a £500m restructuring programme.

  19. Job centres 'ready to help,' government sayspublished at 10:22 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

    The Department for Business has said it is has been in touch with Rolls-Royce over jobs cuts.

    Rolls-Royce engineImage source, WPA Pool/Getty Images

    A department spokesperson said: "The government is in regular contact with Rolls-Royce on its plans to reduce its back office and support functions workforce as a result of its restructuring programme.

    "This is clearly an uncertain time for affected employees and their families and Jobcentre Plus Rapid Response stands ready to help people back into employment as soon as possible."

  20. Rolls-Royce job cuts 'huge concern for East Midlands'published at 10:04 British Summer Time 14 June 2018

    Calum McKenzie
    BBC News

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