ROLLS-ROYCE is axing 4,600 jobs, most of them in Britain, in a bid to save £400million a year.
A third of the workers affected will go by the end of the year, with the remainder departing over the next two years.
The engineering giant has 26,000 UK employees, with 15,700 based at its Derby site. The company said it would honour a previous pledge not to impose compulsory redundancies on union-represented staff there and at its Nottinghamshire plants in Hucknall and Annesley.
Rolls said the overhaul, which follows its announcement in January of plans to cut its five operating businesses to three core units, will affect support functions and management, including within engineering.
Chief executive Warren East (pictured top) said: ‘It is never an easy decision to reduce our workforce, but we must create a commercial organisation that is as world-leading as our technologies.’
Unite union assistant general secretary Steve Turner said: ‘This announcement will be deeply unsettling for Rolls-Royce workers and their families and could have a dire economic impact on local communities reliant on Roll-Royce jobs.’
The jobs cuts will cost £500million — including the bill for redundancies — over three years, but will see the firm save £400million every year by the end of 2020.
Rolls-Royce made pre-tax profits of £4.9billion last year, but has been hit by technical issues with two of its engines.
Shadow business secretary Rebecca Long-Bailey said: ‘This is deeply disturbing news for Derby.’
Exercise runs in family for rugby star Ben
ENGLAND rugby star Ben Foden and his wife, Saturdays singer Una Healy, are championing family fitness after a study revealed parents pile on 22lbs in the first year after having a child.
A poll showed 80 per cent of new mums and dads found it harder to stay fit, losing up to five hours a week from their normal routine.
Ben and Una, who have two daughters Aoife, six, and Tadhg, three, are spearheading the School Run plan launched by gym chain DW Fitness First. It encourages parents to run to and from school with their children after warm-up exercises. Ben, 32, said: ‘This helped us fit exercise around our daily lives with Aoife and Tadhg.’
Bank rate fear sparks a remortgage boom
THE number of remortgage loans being taken out jumped by more than a third in April. Trade association UK Finance said fears of a Bank of England base rate rise helped drive the boom. There were 40,800 new homeowner remortgages completed in April — up 36 per cent in a year. UK Finance’s figures also show there were 26,700 new first-time buyer mortgages completed in April — 3.5 per cent more than in the same month a year earlier. New home mover mortgages were down 4.2 per cent to 25,100.
■ MAJESTIC Wine has toasted a full-year profit, but expects tough trading ahead because of UK retail woes. The 210-branch wine warehouse chain had an £8.3million annual profit, after a £1.5million loss last year.
■ CLOTHING and homeware group N Brown is set to close 20 stores, putting 270 jobs in doubt, after ‘continued weak high street footfall’. The group started consulting staff yesterday over the future of 12 Simply Be and Jacamo outlets, and eight High and Mighty stores. Online sales generate 75 per cent of N Brown’s revenue.
■ RETAIL sales jumped for a second month in a row in May as sustained good weather and the royal wedding encouraged shoppers to splash out, figures show. Sales were up 1.3 per cent compared with April, with growth across all main sectors, according to the Office for National Statistics.