Rolls-Royce considering cutting up to 15{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} of its workforce: source

(Reuters) – British aero-engine maker Rolls-Royce Holdings Plc (RR.L) is considering cutting up to 15{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} of its workforce, a source close to the company told Reuters, with its customers cutting production and airlines parking planes due to the coronavirus pandemic.

The size of layoffs has been mentioned internally by senior management but is by no means finalised, and there is a lot of negotiation still to be done, the source added.

The company’s engines power Airbus (AIR.PA) and Boeing’s (BA.N) widebody jets and it is paid by airlines based on how many hours its engines fly.

The Financial Times earlier reported that the company was preparing to lay off up to 8,000 of its 52,000-strong workforce.

An announcement on the final figure is not expected before the end of May, when Rolls-Royce will update employees, the FT report added. (on.ft.com/2VSaQfD)

Last month, Rolls-Royce scrapped its targets and final dividend to shore up its finances and cope up with the pandemic.

The company’s chief executive officer, Warren East, had said that Rolls-Royce would be looking at cutting its cash expenditure, including salary costs across its global workforce by at least 10{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} this year.