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Rolls-Royce makes a loss of six billion euros

Aviation is on the ground in the Corona crisis. Because no aircraft are bought for this reason, fewer engines are needed. The British manufacturer Rolls-Royce is now feeling this strongly.

The British engine manufacturer Rolls-Royce incurred a loss of 5.4 billion pounds (around six billion euros) in the first half of the year due to falling orders from the aviation industry – a sum that almost corresponds to the cost of the Berlin breakdown airport BER. Rolls-Royce will therefore sell parts of the company in addition to the job cuts that have already been announced and “examine other possibilities to strengthen the finances,” as the company announced on Thursday.

Many people still associate Rolls-Royce with a manufacturer of luxury cars. In fact, the company sold its auto division years ago and since then has only produced engines for aircraft manufacturers – who in turn currently sell almost no machines due to the corona-related restrictions in air traffic.

Rolls Royce plans to cut 9,000 jobs

In this sense, the enormous loss compared to the German car manufacturer VW, which recorded a loss of 1.4 billion euros in the first half of the year, is hardly surprising. Because engines are significantly more expensive than cars.

Rolls-Royce had therefore already announced in May that it would cut at least 9,000 of the approximately 52,000 jobs worldwide. German jobs are also affected. Among other things, 550 jobs in the plant in Dahlewitz (Brandenburg) are to be cut.

The engine manufacturer announced that 4,000 employees had left the company by Thursday and another 5,000 would follow by the end of the year. Around 2,500 of them went into early retirement or after a severance payment.

Rolls-Royce aims to save around 1.3 billion pounds by the end of 2022. The sale of parts of the company, including the Spanish supplier IP Aero, is expected to bring in a further two billion pounds over the next 18 months. Rolls-Royce had already made a loss in the first half of 2019, it was 909 million pounds. The reason was technical problems with certain engines.

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