Rolls-Royce to Axe 2,500 Jobs in Major Shake-Up
Rolls-Royce, the legendary aircraft engine titan, has announced plans to slash up to 2,500 jobs worldwide. The cuts kick off the tenure of new CEO Tufan Erginbilgic, who took charge in January amid tough times for the firm.
‘Burning Platform’ Spurs Drastic Action
Erginbilgic called Rolls-Royce a “burning platform” when he stepped in, highlighting the devastating impact the pandemic had on the aviation sector. With flights grounded for months, the company has struggled to keep its engines running smoothly.
Details on where the jobs will go remain sketchy. However, insiders say hundreds of back-office roles in the UK are on the chopping block. Rolls-Royce employs 42,000 globally, half of them here at home.
Defence and Nuclear Work Safe—for Now
In a rare piece of good news, the company’s Ministry of Defence-backed submarines division in Derby, employing 3,600 staff, is safe from cuts. Similarly, the promising Small Modular Reactor nuclear project in partnership with US firms will remain untouched.
Rolls-Royce stressed it will hold talks with unions before revealing more on the job losses.
Pay Rises Beat Inflation at Last
In brighter news for workers, recent stats reveal average wage growth outpaced inflation for the first time in nearly two years. Between June and August, pay rose 7.8%, topping inflation rates.
However, this is an average figure. Not everyone will feel the pinch ease, especially given the huge pay gap between public and private sectors. Public sector wage growth hit 6.8%—the best since records began in 2001.
Think Tank Warns on Taxes Ahead of Election
The Institute for Fiscal Studies (IFS) has thrown cold water on hopes for tax cuts before the next general election. Their annual report warns the UK faces a tough fiscal squeeze, with no room to ease taxes or boost spending.
The IFS warns reckless tax giveaways could trigger a long recession plus even higher interest rates. They predict 4.5 million more people will get bumped into higher tax brackets by 2028, thanks to frozen tax thresholds—a move that could tack on a whopping £52 billion a year in extra taxes.
The message is clear: the UK must tighten its belt if it wants to avoid future tax hikes and economic pain.
