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cutting Rolls-Royce

Rolls-Royce is cutting at least 9,000 jobs as the coronavirus slams aviation – CNN

London (CNN Business)Aircraft engine maker Rolls-Royce is cutting at least 9,000 jobs because of the collapse in demand for air travel caused by the coronavirus pandemic.

“We are proposing a major reorganization of our business to adapt to the new level of demand we are seeing from customers,” the company said in a statement on Wednesday. “As a result, we expect the loss of at least 9,000 roles from our global workforce of 52,000.”
Rolls-Royce (RYCEF) said its civil aerospace business, which is concentrated in the United Kingdom and makes engines for Boeing (BA) and Airbus (EADSF) planes, will bear the brunt of the restructuring. The division accounted for more than half the group’s revenue in 2019.
“We haven’t completely concluded on exactly where the job losses will be because we have to consult with our unions, but it’s fair to say that of our civil aerospace business, approximately two thirds of the total employees are in the UK at the moment,” CEO Warren East told BBC radio on Wednesday.
The company said it will take several years for the commercial aerospace market to return to the levels seen just a few months ago and it needed to adjust its capacity to meet the reduced demand.
“We’re very grateful for the help that the [UK] government has provided to help us through the immediate trough… but no government can extend things like furlough schemes for many years into the future,” East said.
Rolls-Royce currently has 3,700 UK employees on a government-funded furlough program, with staff in Spain, Germany and Norway also on reduced hours or state support, a spokesperson said. The company has already deferred spending, paused its dividend and implemented pay cuts of 20% among senior management to shore up cash.
It is now resizing its business to prepare for a smaller global aviation market. The industry is going through the worst crisis in its history, with airline passenger revenues expected to be cut in half this year. Several major airlines, including Lufthansa (DLAKY) and British Airways (ICAGY), have warned that demand for international travel won’t fully recover for several years.
This has dealt a huge blow to planemakers and other aerospace companies. Airbus and Boeing have both announced deep cuts to production and jobs, as airlines scale back orders for new planes. Boeing’s deliveries fell to an 11-year low in April.
Earlier this month, GE Aviation, General Electric’s (GE) jet engine business, said it will permanently reduce its global workforce by as much as 25% this year, or some 13,000 jobs.
“Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there,” East said in a statement.
UK labor union Unite described the job cuts at Rolls-Royce as “shameful opportunism.”
“This company has accepted public money to furlough thousands of workers. Unite and Britain’s taxpayers deserve a more responsible approach to a national emergency,” Unite official Steve Turner said in a statement. “We call upon Rolls-Royce to step back from the brink and work with us on a better way through this crisis,” he added.
Unite said that it expected 3,375 of the 9,000 job cuts will be in the United Kingdom.
The English city of Derby is home to Rolls-Royce’s civil aerospace business. The division also has operations in Germany, Singapore and the United States.
Rolls-Royce is also a major supplier of engines for military aircraft, and power systems for marine vessels.

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cutting Media

Vox Media is cutting pay and furloughing 9% of employees – TechCrunch

Vox Media is making a number of cutbacks in response to the economic fallout from the COVID-19 pandemic.

In addition to Vox itself, the digital media company owns properties including Curbed, Eater, Recode, SB Nation and The Verge — and it acquired New York Magazine last year.

In a staff memo obtained by TechCrunch (and others), CEO Jim Bankoff outlined several cost-cutting measures but no outright layoffs.

The measures including furloughing 9% of employees from May 1 to July 31. Bankoff said this will include some employees in sales, sales support, production, events, IT and office operations, along with editorial staff at SB Nation and Curbed. He also said affected employees will retain their company health insurance during this period.

In addition, the company is freezing wages through the end of 2020, pausing its 401K match, reducing hours for 1% of employees and cutting salaries during the same three-month furlough period for employees making more than $130,000 per year — the cuts start at 15%, with Bankoff and Vox Media President Pam Wasserstein taking a 50% salary reduction.

In explaining the layoffs, Bankoff pointed to the broader economic collapse caused by the pandemic, with the dramatic reduction in ad spending, which has led many other media companies to announce layoffs and/or salary reductions.

Bankoff wrote:

We’ve already seen a decline in our business. Weakness in March, driven by the cancellations of SXSW and March Madness, the collapse of travel, sports and fashion-related advertising, and other factors led us to miss our revenue goals by several million dollars in the first quarter; the impact will be significantly greater in the second quarter. While expressing the severity of this decline, it’s also important to know that we will rebound. We don’t know when or to what extent a rebound will occur. I’d be overjoyed if it happened quickly, but we cannot bet our company on these hopes.

Update: The Vox Media Union has been tweeting in response to the news, painting the current plan as the result of negotiation:

While we appreciate Vox Media talking to us in good faith, we don’t agree with the company’s decision to furlough employees — especially after hundreds of us told the company we were willing to take wider pay cuts to save all jobs. So we fought for strong protections. We won a guarantee of no layoffs, no additional furloughs, and no additional pay cuts through July 31, along with enhanced severance for any layoffs that occur in August-December. The company also agreed to reduce the number of furloughs.

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