GKN Aerospace plans to reduce its employee headcount by about 1,000 as part of a wide-ranging restructuring that will see it combine its four independent divisions into what it calls a single connected network of global sites supported by shared services.
The plan to integrate into a single business comes following rapid growth through acquisition since 2006, since which time its annual revenues grew from £600 million ($721 million) to £3.5 billion in 2018.
“We are creating a single, fully integrated business aligned to our customers’ needs, which will ensure we are better positioned within the competitive global aerospace market,” said GKN Aerospace CEO Hans Büthker in a statement.
“Our rapid growth has brought us world-leading technology, an outstanding global footprint from which to support our customers, a balanced portfolio of work across all major aircraft platforms, and great people. It has also made us relatively complex. By taking the next step and fully integrating, we can begin to realize our full potential.”
GKN plans to execute the reorganization within the next two years. It said the employee cuts will involve non-production roles and result from a reduction in layers of management and support functions. The company added that it will aim to manage as much of the reduction as possible through “natural means,” such as the usual turnover of people, vacancy management, and redeployment of employees.
GKN Aerospace first outlined its intention to integrate into a single operating model during last year’s first quarter and it has now begun to consult with “key stakeholders” on the details of the proposals.