Rolls-Royce Holdings is considering a significant reduction in its workforce following the engagement of consultants led by McKinsey & Co. The purpose of this consultation is to provide advice on streamlining the company's operations, according to a report by The Times of London.

According to an unidentified consultancy source cited by the newspaper, the turnaround plan involves merging non-manufacturing departments within Rolls-Royce's civil aerospace, defence, and power systems divisions. As a consequence, around 10 per cent of the approximately 30,000 jobs in these departments could be at risk of elimination, as reported.

The Times reported that the company's headquarters in Derby are expected to experience the most significant impact from the job cuts, as a majority of its back-office administration functions are located in the city. Rolls-Royce clarified that a decision regarding its workforce had not been finalised at the time.

“We are working at pace on our transformation across a number of work streams, and only one part of one of those work streams is about realising organisational efficiencies. We have made no decisions whatsoever on any potential impact on employees, and any suggestion otherwise is pure speculation,” a spokesperson said. 

Rolls-Royce CEO Tufan Erginbilgic has launched a transformation program at the manufacturing company, which includes significant management changes.

The aviation industry worldwide is grappling with production challenges due to a scarcity of spare parts and skilled labour, compounded by disruptions arising from sanctions imposed on Russia. These sanctions affect the supply of components essential for aircraft engines, including titanium.