Troubled Rolls-Royce cuts top management
17 December 2015, 18:57
London - British engines maker Rolls-Royce, hit by a series of profit-warnings, announced Wednesday changes to its top management structure, resulting in the departure of its head of aerospace.
The removal of a layer of senior management represents a first step in a company-wide restructuring announced last month by recently-appointed chief executive Warren East.
"The changes we are announcing today are the first important steps in driving operational excellence and returning Rolls-Royce to its long-term trend of profitable growth," East said in a statement.
Rolls, which makes engine systems for aircraft and sea vessels, announced the departures of company veteran Tony Wood, president of its Aerospace division, and Lawrie Haynes, president Land & Sea.
"Both will remain with the business into 2016 in order to assist with the transition to the new structure," the company said.
Rolls said "the new structure will clarify executive accountabilities, intensify leadership focus on operational performance and allow Rolls-Royce to build on its world class engineering capabilities".
The group is looking to make cost savings of 150 million-200 million ($226 million-$301 million, 206 million euros-275 million euros) from 2017, it announced last month.
Rolls meanwhile revealed in the second-half of 2015 that it plans to cut about 1,000 jobs at its marine division as slumping oil prices weigh on demand for vessels.
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