Engine Makers Rolls Royce Axe 5,000 Jobs RETRANSMITTING a0483 to CORRECT cycle designator.
LONDON (AP) _ Airplane engine maker Rolls-Royce PLC said today that it plans to eliminate 5,000 jobs, nearly 10 percent of its workforce, a result of hard times in the airline industry.
In a statement, the company said it lost $263 million before taxes last year, compared with pre-tax profits of $73 million in 1991.
″Depressed market conditions have remained longer than forecast,″ chairman Sir Ralph Robins said.
″The fact is that with the crisis in the airline business, with airlines not being able to buy the aircraft, the numbers being produced are falling very rapidly,″ industry analyst Peter Deighton said in an interview on British Broadcasting Corp. radio.
Rolls-Royce PLC, one of Britain’s leading engineering companies with a payroll of 52,000, already has shed 12,000 jobs in the last two years.
The company is a world leader in the production of advanced engineering products, including gas turbine engines for the aerospace industry.
Company spokesman Martin Brodie said cuts will be made over two years at the company’s plants in the central English city of Derby, in Glasgow, Scotland, and in Coventry and Bristol in the south.
Rolls-Royce PLC is separate from car maker Rolls Royce Motor Cars Ltd.