OpenAI Moves to Acquire Neptune as It Expands AI Training Capabilities 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Amazon Italy Pays €180M in Compensation as Delivery Staff Probe Ends 
UPS MD-11 Crash Prompts Families to Prepare Wrongful Death Lawsuit 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
USPS Expands Electric Vehicle Fleet as Nationwide Transition Accelerates 
Anthropic Reportedly Taps Wilson Sonsini as It Prepares for a Potential 2026 IPO 
Momenta Quietly Moves Toward Hong Kong IPO Amid Rising China-U.S. Tensions 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Australia Moves Forward With Teen Social Media Ban as Platforms Begin Lockouts 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Rolls-Royce disclosed the past weekend that the company is planning to halt the operations of its civil aerospace unit. The proposed shutdown is only for two weeks and may happen in the summer.
Why Rolls-Royce suggested a short break
As per Reuters, Rolls-Royce, a British luxury automobile maker, was forced to temporarily stop operation in its jet engine business to cut down on costs. Apparently, the company is also a victim of the COVID-19 pandemic, and it is already feeling its effects.
The company already approached the unions so they can start discussions about the imminent shutdown and cutbacks at its civil aerospace unit. They don’t have a choice but to propose the temporary closedown of the plant since the cash flow has been sluggish in recent months.
“As we continue to manage our cost base in response to the ongoing impact of the COVID-19 pandemic on the whole commercial aviation sector, we are proposing a two-week operational shutdown of Civil Aerospace over the Summer,” Rolls-Royce said in an emailed statement.
As mentioned, Rolls-Royce’s business’ has been affected by the pandemic crisis after its airline customers have grounded a number of planes. Moreover, there were also warnings that the travel industry will further experience a slump since fewer people are traveling these days. But even with the situation, the company is still left with its usual outlays since the business is in operation.
What will the company gain from the shutdown
Bloomberg reported that the move is expected to affect the wages of the 19,000 employees working in Rolls-Royce’s civil aerospace division; this is why the company is in talks with the workers’ union. 12,500 of this workforce is from the U.K., according to the automaker’s spokesman.
On the other hand, it will be saving millions of pounds from less business operation expenses, including energy. This is the primary goal for this plan, so Rolls-Royce is looking forward to easing the financial struggle after the shutdown.
Then again, it is not clear if the company is only closing plants in the U.K. or it will also affect the other plants in various locations. The exact date of the closure is also unknown at this time since it is still in the planning stage.
