Rolls Royce to cut 2600 staff over next 18 months; appoints new CFO

British engineer Rolls-Royce said it would cut 2,600 jobs over the next 18 months, slashing costs just three weeks after a major profit warning. The group also appointed David Smith as its chief financial officer, replacing Mark Morris who has decided to leave the company after 27 years.

The job cuts will cost an extra £120 million ($192 million) over the next two years, before reducing spend by around  £80 million once the changes have been fully implemented. "We are taking determined management action and accelerating our progress on cost," said Chief Executive John Rishton. "The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company."