Engineering giant Rolls-Royce is set to axe up to 2,500 workers in an effort to streamline its operations and increase efficiency. The company, which has 42,000 employees globally, with half of them based in England, plans to make cuts in its back-office positions. The decision has been met with criticism from the trade union Unite, which accused the company of prioritizing shareholders over its workers. Rolls-Royce CEO Tufan Erginbilgic stated that the job cuts would eliminate duplication and deliver cost savings, as the company seeks to build a more resilient and competitive future.
Airport regulator supports reduction in fees at Heathrow
The competition regulator has backed a decision by the Civil Aviation Authority (CAA) to decrease the cap on charges per passenger at Heathrow Airport. The CAA ruled that the charge should be reduced from £31.57 to £25.43 over the next three years. While airlines wanted an even larger reduction, the CAA's decision was supported by the Competition and Markets Authority. The move aims to reduce costs for airlines and ultimately benefit consumers. Virgin Atlantic expressed disappointment with the decision, stating that it did not go far enough to protect passengers from excessive charges.
Wealth manager St James's Place to cut exit fees
Wealth management firm St James's Place has announced plans to eliminate early withdrawal penalties on investment bonds and pensions from 2025. The decision comes after pressure from regulators and consumers and aims to comply with new consumer rules introduced by the Financial Conduct Authority. The highly-criticized exit charges led to a 20% drop in the company's shares. The changes in the charging structure seek to ensure transparency and fairness for customers.
Bellway predicts decrease in homebuilding due to low demand
Homebuilder Bellway has warned that it will construct 30% fewer homes in the next year due to low demand. The company plans to build 7,500 homes, down from 11,000 this year. Bellway also predicted a 5% decrease in house prices, attributing the decline to inflation and increased mortgage interest rates impacting affordability and demand. Pre-tax profits for the year to July fell by 18% to £532.6 million.
Revolution Bars faces challenges as sales decline
Revolution Bars, which operates various late-night hospitality establishments, including Revolution and Revolucion de Cuba, has reported a 9% decrease in like-for-like sales in the 12 months to July. The company's CEO, Rob Pitcher, attributed the decline to inflation, which has affected consumers' ability to spend on discretionary items such as nights out. Pitcher expressed hope that confidence would return as inflation peaks.
Electric van company Volta Trucks files for bankruptcy
Electric van business Volta Trucks has filed for bankruptcy, resulting in the loss of 600 jobs in Warwick, Coventry, and Reading. The company faced difficulties after its battery supplier, Proterra, went bankrupt in the US. Volta Trucks struggled to find replacement batteries, which hindered its ability to raise necessary investment. The company plans to file for administration in England shortly. Volta Trucks had been working on developing the first purpose-built 16-ton electric truck.
KPMG to cut 100 jobs in deal advisory division
Accounting firm KPMG is set to reduce its deal advisory division by around 100 employees out of a total of 1,700. The cuts come as a result of a decline in mergers and acquisition activities amid economic uncertainty. KPMG cited the decision of some clients to delay or pause projects as a reason for the reduction in headcount. Last week, KPMG was fined a record £21 million by the auditing watchdog over its work for the collapsed outsourcing business Carillion.
LinkedIn to lay off 668 employees
Social media company LinkedIn has announced plans to lay off 668 employees in three teams, citing slowing revenue growth as the reason for the cuts. The decision comes as the company faces challenges in maintaining its previous growth rate. The affected employees will receive support in finding new job opportunities.
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