Rolls Royce axes 700 jobs at Innchinnan

[GKirk]

https://dailybusinessgroup.co.uk/2020/0 ... nan-plant/

Aerospace giant Rolls-Royce has confirmed that 700 jobs are to be axed at its Inchinnan factory near Glasgow Airport.

The company said it hopes the cuts can be achieved through voluntary redundancy.

Staff at the Renfrewshire plant, which manufactures compressor blades and seals for planes, have been facing an uncertain future since the company announced plans to cut at least 9,000 jobs, mainly in the UK.

Rolls-Royce is looking at withdrawing its entire services capability from the Inchinnan site.

Not good news at all

[atuk]

https://dailybusinessgroup.co.uk/2020/0 ... nan-plant/

Aerospace giant Rolls-Royce has confirmed that 700 jobs are to be axed at its Inchinnan factory near Glasgow Airport.

The company said it hopes the cuts can be achieved through voluntary redundancy.

Staff at the Renfrewshire plant, which manufactures compressor blades and seals for planes, have been facing an uncertain future since the company announced plans to cut at least 9,000 jobs, mainly in the UK.

Rolls-Royce is looking at withdrawing its entire services capability from the Inchinnan site.

Not good news at all

Horrible news and totally compounds John Holland Kaye who has today stated we face a pandemic for coronavirus but could well become a pandemic of unemployment.

[Allen McL]

Is this another case of using pandemic to force through a huge restructuring by a large employer ? Aero engines aren't exactly ordered over the phone and delivered the following day, week or month. So why has demand suddenly dried up when surely orders currently under construction plus 787 remedial work have been ongoing since before the two months ago lockdown and layoff ?

I know airlines are kicking orders and deliveries into the long grass for now but surely there must be engine orders for aircraft that are months or longer away from being anywhere near to completion ?

[Allen McL]

Is this another case of using pandemic to force through a huge restructuring by a large employer ? Aero engines aren't exactly ordered over the phone and delivered the following day, week or month. So why has demand suddenly dried up when surely orders currently under construction plus 787 remedial work have been ongoing since before the two months ago lockdown and layoff ?

I know airlines are kicking orders and deliveries into the long grass for now but surely there must be engine orders for aircraft that are months or longer away from being anywhere near to completion ?

[bill]

Desperately sorry for those losing their jobs in any industry at any time. Coronavirus has given so many badly run companies an opportunity to down-size and not 'lose face'. So many are using this as a flag of convenience which makes it all the harder to take, BA being another example to name but one .

[G-WATP]

Is this another case of using pandemic to force through a huge restructuring by a large employer ? Aero engines aren't exactly ordered over the phone and delivered the following day, week or month. So why has demand suddenly dried up when surely orders currently under construction plus 787 remedial work have been ongoing since before the two months ago lockdown and layoff ?

I know airlines are kicking orders and deliveries into the long grass for now but surely there must be engine orders for aircraft that are months or longer away from being anywhere near to completion ?

RR don't really sell engines. They sell power by the hour. Many airlines don't order engine x and pay RR when engine x is delivered. Instead they contract with RR for RR to provide them with power and pay for each hour of power consumed. They also derive revenue by selling spare parts and refurbishing older engines. With mass grounding worldwide reducing their power by the hour income and retiral of older fleets reducing the spare parts and refurbishment income, today's unwelcome news is, unfortunately, no surprise.

[Allen McL]

Is this another case of using pandemic to force through a huge restructuring by a large employer ? Aero engines aren't exactly ordered over the phone and delivered the following day, week or month. So why has demand suddenly dried up when surely orders currently under construction plus 787 remedial work have been ongoing since before the two months ago lockdown and layoff ?

I know airlines are kicking orders and deliveries into the long grass for now but surely there must be engine orders for aircraft that are months or longer away from being anywhere near to completion ?

RR don't really sell engines. They sell power by the hour. Many airlines don't order engine x and pay RR when engine x is delivered. Instead they contract with RR for RR to provide them with power and pay for each hour of power consumed. They also derive revenue by selling spare parts and refurbishing older engines. With mass grounding worldwide reducing their power by the hour income and retiral of older fleets reducing the spare parts and refurbishment income, today's unwelcome news is, unfortunately, no surprise.

Well that makes more sense, thanks.

[McG]

From the news report earlier it seems that Inchinnan has a manufacturing facility and a services facility. The manufacturing facility make seals and fan blades. The services facility I believe do engine overhauls and it is this division where the job losses are concentrated.

[G-WATP]

Rolls-Royce has cast doubt on the future of two factories in Scotland and the Midlands after labelling them "not core" to its wider business.
Almost 800 staff work at the plants at Inchinnan in Scotland, and Ansty, near Coventry.

Rolls said it wanted to continue to produce turbine blade and compressor manufacturing at Inchinnan but that operations at the factory were not core to the business. Some of the other work at the plant is being transferred to Rolls’s Derby base. Production of casings for jet engines at Ansty was also labelled as not core.

As a result the company said it was looking to make both Inchinnan and Ansty more competitive and reduce operating costs, while seeking “medium-term direction” for the plants. Rolls said it would work with unions on doing this.

For the Scottish plant this could involve a sale to a strategic investor, though insiders said they expected both sites to be shut.

https://www.telegraph.co.uk/business/20 ... factories/

[Allen McL]

Not good news.