Rolls-Royce employees await their fate

The Indianapolis Business Journal reports that cuts may be on the way for employees at Rolls-Royce in Indianapolis:

The more than 4,000 employees at the region's second-largest manufacturer are waiting to learn whether some will lose their jobs. Rolls-Royce Group PLC plans to cut up to 2,300 U.S. and European positions.

The British aerospace company on Jan. 11 said it plans to slash its work force by almost 6 percent among managerial, professional and clerical ranks.

It blames rising raw material costs and the declining value of the U.S. dollar.

First-half 2007 profits of $600 million were roughly half that for the same period in 2006.

Rolls-Royce's primary manufacturing facility in North America is at 2001 S. Tibbs Ave. It’s the largest manufacturer locally behind pharmaceutical giant Eli Lilly and Co.

Local executives aren't yet sure what the impact will be here because Rolls-Royce must assess how many employees company-wide may depart voluntarily, said Maria Weber, Indianapolis spokeswoman.

Rolls employs about 8,300 in the United States. As of late last year, Rolls had a total of nearly 40,000 workers, including 23,300 in the United Kingdom.

The corporate job cuts are the second cloud to appear over local operations in less than six months.