StockMarketWire.com - Aviation and energy focused engineering company Rolls-Royce said it would cut 9,000 jobs to adapt to the collapse in the commercial airline sector.

The cuts would comprise around 17% of the company's global workforce of 52,000 and would follow a recent bout of job cuts at Rolls-Royce that were unrelated to the Covid-19 crisis.

The company said it would also cut expenditure across plant and property, capital and other indirect cost areas.

The reorganisation was expected to generate annualised savings of more than £1.3bn, of which the headcount reduction would contribute around £700m.

Related cash restructuring costs were likely to be around £800m, with outflows incurred across 2020 to 2022.

Rolls-Royce said it was increasingly clear that activity in the commercial aerospace market would take several years to return to the levels seen just a few months ago.

'This is not a crisis of our making,' chief executive Warren East said.

'But it is the crisis that we face and we must deal with it.'

'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 take difficult decisions to see our business through these unprecedented times.'

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