Rolls-Royce Holdings Plc could cut thousands of jobs following it hired consultants led by McKinsey & Co. to provide advice on streamlining the company’s operations, as per The Times report, adding that the carmaker with the most luxurious cars has employed consultants led by McKinsey & Co. to advise about the process.
The report further revealed that the company was considering removing 3,000 non-manufacturing employees from its workforce across the globe. Additionally, Rolls-Royce CEO Tufan Erginbilgic has started a change program within the company, including several critical changes to management. The company will combine the non-manufacturing divisions within the Rolls’ civil power, defense, and aerospace systems divisions as part of the plan.
“We are working at pace on our transformation across a number of work streams and only one part of one of those work streams is about realizing organizational efficiencies. We have made no decisions whatsoever on any potential impact on employees and any suggestion otherwise is pure speculation,” Bloomberg published a report the source as a Rolls-Royce spokesperson.
The report states that the most significant negative impact from Rolls Royce layoffs will be on the headquarters of the company since the majority of its back-office administrative functions are located within the capital city.
The report also stated that Rolls-Royce’s headquarters will likely be the most brutal hit because most of its back-office administrative tasks are within the City.
Rolls-Royce layoffs are not the only ones in the automotive industry. To date, Ford has made announcements of layoffs for China, and, like the industry, numerous other companies are undergoing massive layoffs in case of a global recession.
The round also had the participation of investors like Prajit Nanu (co-founder and CEO of NIUM), JITO Angel Network, INSEAD Angels India, Group Landmark, Volrado Venture Fund, and other investors. The funds raised will enable the company to expand into new regions and enhance the tech platform for dealerships that sell new cars, unlocking value in used car sales.
“Our goal is to address legacy issues around convenience, transparency, and pricing for both new car dealers and customers. We have developed a pioneering AI-ML-based VIAR technology platform, which is dedicated to accelerating pre-owned transactions and driving value for all stakeholders. We are thrilled to have Inflection Point Ventures (IPV) partner with us in our mission to revolutionize the used car market in India. This investment underscores our position as a leading player in the pre-owned vehicle platform market, and we believe IPV’s expertise and support will help us achieve our ambitious growth targets,” said Ravi Mehra, CEO and co-founder of SheerDrive.