Rolls-Royce plans �major restructuring�
BBC
Engineering group Rolls-Royce has said it will give details of a major restructuring of the business later, reports BBC.
Chief executive Warren East, who took the reins in July, said his changes would simplify the organisation, streamline senior management, reduce fixed costs and speed up decisions. East said he was targeting annual cost savings of between 150m-200m.
Earlier this month, the company announced its fifth profit warning in less than two years. East said: As a group we are undergoing an unprecedented period of change... these changes, while more painful than we expected in the near-term, are vital to our long-term success.
He added that his review had underpinned my confidence about the opportunities ahead for the business.
This is fundamental to ensuring Rolls-Royce best positions itself to compete for the long-term opportunities before us, he said. Earlier this month, the engineering group said the review was likely to involve job losses among its 2,000 senior managers.
It has previously announced 3,600 job cuts across the group.
Rolls-Royce chairman Ian Davis said in a statement that the board was committed to providing East with the support he needed to implement the findings of his review.
The firm has been badly affected by a decline in its main aircraft engine business.
Earlier this month, it said that while demand for new engines for large passenger aircraft remains unchanged, many airlines have been sidelining their older planes in favour of modern, more fuel efficient models.
