Rolls-Royce to Axe 2,500 Jobs in Bold Shake-Up
Rolls-Royce is set to cut up to 2,500 jobs worldwide in a dramatic bid to slash costs and streamline operations. The aircraft engine giant’s new CEO, Tufan Erginbilgic, made the tough call shortly after taking charge in January, amid ongoing fallout from the pandemic.
‘Burning Platform’ Spurs Major Job Cuts
Erginbilgic described Rolls-Royce as a “burning platform” when he stepped in. The aviation slump hit the company hard, with grounded planes and stalled flights crippling revenue.
Though the full details of the layoffs are under wraps, insiders say hundreds of back-office roles in the UK will be hit. Rolls-Royce employs around 42,000 people globally, half of them in the UK.
The company stressed it will consult unions before finalising the cuts. Notably, its Defence submarine unit in Derby, employing 3,600 staff and backed by the Ministry of Defence, won’t be affected. Neither will the Small Modular Reactor nuclear project, a key Anglo-US energy partnership.
Wages Finally Outpace Inflation – But Not For Everyone
In brighter news, UK wage growth has outstripped inflation for the first time in nearly two years. Pay rose 7.8% from June to August, topping inflation figures and signaling some relief from sky-high living costs.
Data also revealed pay overtook inflation in the three months before July – a first since October 2021. But this is an average increase; many still face cost-of-living struggles. Public sector workers saw the biggest growth, at 6.8%, the highest on record since 2001.
Warning Over Tax Cuts Ahead Of Election
The Institute for Fiscal Studies (IFS) has issued a stern warning: don’t expect tax cuts or spending boosts before the next election. The UK’s finances are under strain, and reckless fiscal moves could spark a nasty recession and push interest rates even higher.
The IFS highlights that freezing tax thresholds for six years could hike the tax burden by £52 billion annually by 2028. This freeze means 4.5 million more Britons will slip into higher tax bands in the coming years.
For voters, the message is clear: tough financial choices lie ahead – no freebies on the tax front.
