Engine-maker Rolls-Royce to slash 2,600 jobs in cost-cutting restructuring

IndustriesAssociated Press

Airplane engine-maker Rolls-Royce Holdings PLC says it will reduce its staff by 2,600 over the next 18 months as part of a restructuring focused on its aerospace decision.

The group warned last month that the tough economic climate meant it would have to increase its focus on costs. Chief Executive John Rishton said that the measures announced Tuesday "will not be the last."

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Rolls-Royce employs more than 55,000 people in 45 countries, 22,000 of them in Britain. It manufactures engines for civilian and military ships and aircraft, as well as turbines for power plants.

It is not affiliated with the Rolls-Royce automobile brand, which is owned by Germany's BMW.

Rolls-Royce shares rose almost 2 percent on the news to 850 pence ($13.60) Tuesday on the London Stock Exchange.