Rolls-Royce will temporarily close its factories for two weeks in the summer 2021. It is the first time in history the company has shut down its engine factories. The move will affect all 19,000 staff. Employees were made aware of the shutdown in November last year, and were told that the loss of two weeks’ pay will be spread across the year to reduce the impact on their income.
Rolls-Royce said in January that it expects flying hours of aircraft powered by its engines to decline to 55% of 2019’s levels, down from previous estimates of 70%.
The downgrade means a cash outflow of some £2bn, higher than analyst estimates.