Rolls-Royce plans to cut 2,000 job in 2009

Rolls-Royce Group PLC said today it plans to cut up to 2,000 jobs next year as demand for its products slumps amid the global economic downturn.

The aircraft engine maker said it plans to slash 140 jobs at its aerospace assembly and test facility in Derby, England.

The company said this was the first part of a plan to cut between 1,500 and 2,000 jobs across its businesses worldwide in 2009.

Rolls-Royce said the cuts would help it trim costs and reduce output as demand drops because of an uncertain economic outlook and delays on some of its most high-profile projects, like the Airbus A380 and Boeing 787.

The reduction in head count comes on top of 2,300 job losses the company announced in January.

At present, Rolls-Royce employs around 39,000 people globally, including around 22,100 in Britain.

"We are determined to maintain our focus on cost reduction and competitiveness as the world economy enters a challenging period," said Chief Executive John Rose.

The union Unite said the announcement was disappointing. "Rolls-Royce must take a measured approach to this temporary downturn in the airline industry. In the past the company has cut too many jobs and Rolls-Royce struggled to meet the upturn in the market," said Unite's national officer, Bernie Hamilton.

Shares fell 6 per cent to 251 pence ($3.74) in early trading on the London Stock Exchange.