Rolls-Royce to Cut 2,300 Jobs
British aero-engine maker Rolls-Royce Group plans to cut 2,300 jobs from among its managerial, professional and clerical staff to help offset rising costs and the effect of the weak dollar.
"The impact of these proposed changes will extend to the UK, United States, Germany, the Nordics and other countries where the relevant functions are located," Rolls-Royce said in a statement on Friday.
"In the UK, the group will seek to secure the headcount reductions, wherever possible, through voluntary redundancy."
Rolls-Royce said the restructuring would have no impact on its 2007 results.
"Costs associated with this exercise in 2008 will largely be balanced by savings achieved in the course of the year."
Rolls-Royce, like other British companies which carry out a large part of their business in dollars, has seen profits hit as sterling reached a 26-year high against the U.S. currency last year.
Credit Suisse analysts forecast in a recent broker note, looking at the pound backing away from those highs, estimated that "every 1 cent move in the long-term dollar assumption added 12 million pounds to (Rolls-Royce's) long-term EBIT (earnings before interest, and tax)".
Rolls-Royce shares, which have performed in line with other London-listed aerospace and defense companies over the past 12 months, closed at 525 pence on Thursday to value the business at 9.6 billion pounds ($18.7 billion).
The sector has outperformed the broader stock market by 18 percent in the same period.