Rolls Royce has announced in a trade update to the markets the measures they will be taking to save millions of pounds during the coroanvirus pandemic.
The aerospace company, which has a base in Filton, has explained the cuts they will be making and how staff will be affected.
The cuts include at least a 10 per cent drop in pay for all staff while senior managers and executives will see a 20 per cent cut for the rest of the year, reports Derbyshire Live.
Rolls-Royce said it was also reducing discretionary costs, such as non-critical capital expenditure projects, consulting, professional fees and sub-contractor costs, ceasing all non-essential travel and postponing external recruitment.
The firm said that the “headwind” caused by the Covid-19 outbreak so far was approximately £300 million.
Last week the company halted all essential work to deep clean and carry out a risk assessment on the premises.
Rolls-Royce said that the main impact on the firm had been on engine flying hours in its civil aerospace business.
It said: “Widebody flying hours fell by approximately 25% in the first quarter, compared to the prior year, and fell approximately 50% in March, with an expected further deterioration in April and beyond as airlines have grounded an increasing proportion of their fleets over the last few weeks.
“Output of new widebody engines remained broadly stable in the first quarter as airframe customers maintained production levels.
“However, our airframe and airline customers are facing unprecedented business challenges and we are in close communication with our customers and suppliers as we prepare for an anticipated reduction in engine delivery and MRO (maintenance, repair and overhaul) volumes.”
Chief executive Warren East said: "We find ourselves in unprecedented times, both as a company and as a key player in vital power markets across the world.
“Our priority is to do everything we can to safeguard the lives and livelihoods of our people and to play our part in helping our customers, partners and communities.
“We are taking significant measures to strengthen the operational and financial resilience of our business.
“I would like to thank all our 52,000 colleagues worldwide for their support, dedication and hard work at this time when difficult decisions are being made."
