Rolls-Royce says it is “working closely” with staff and trade union representatives following recent reports the aerospace giant could cut thousands of jobs.
A source at the company told the Financial Times that senior executives within the business are reportedly working on a restructuring plan that could lead to the loss of around 8,000 roles.
Rolls-Royce has not confirmed the figure but said it needed to “take further action” despite increasing liquidity and reducing spending following the Covid-19 outbreak.
The company said in a statement: “The impact of the Covid-19 pandemic is unprecedented.
“We have taken swift action to increase our liquidity, dramatically reduce our spending in 2020, and strengthen our resilience in these exceptionally challenging times.
“But we will need to take further action. We have to do this right, which means we are working closely with our employee and trade union representatives and then we will consult with everyone affected.
“We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month.”
Want more business news straight to your inbox?
BusinessLive is your home for business news from around the country - and you can stay in touch with all the latest news through our email alerts.
You can sign up to receive morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we'll send out breaking news alerts for any stories we think you can't miss.
Visit our email preference centre to sign up to all the latest news from BusinessLive.
Most Read
An announcement on a final figure for the job cuts is not expected before the end of May.
If Rolls-Royce does cut 8,000 roles, it would be the single biggest workforce reduction in 30 years, according to the FT. The company currently employs some 52,000 people.
Workers union Unite is now calling on Rolls-Royce and other manufacturers to “step back from drastic short-term responses”.
Steve Turner, Unite assistant general secretary, said: “We understand the challenges to our industries from Covid-19 and the impact of Government measures to protect public health on both the immediate and longer-term outlook for manufacturing as well as the wider economy."
He added: "Right now we are asking Rolls-Royce, along with others across manufacturing, to hold firm and defer from short-term reactions that will both damage the economy and undermine our ability to emerge from this with job security and consumer confidence intact.”
The news comes as Rolls-Royce and Airbus call time on a joint project to create an experimental hybrid-electric aircraft.