Rolls-Royce axes two divisions

Embattled engine maker Rolls-Royce has confirmed plans to axe its two divisions and shake-up management in the latest move to turn the group around after five profit warnings.
By The Newsroom
Published 16th Dec 2015, 08:16 BST
Rolls-Royce's Trent XWB engineRolls-Royce's Trent XWB engine
Rolls-Royce's Trent XWB engine

Chief executive Warren East will scrap the Aerospace and Land & Sea divisional structure - an overhaul which will claim the scalp of two top bosses.Tony Wood, president of the Aerospace division, will leave the company next year, while Lawrie Haynes, president of the Land & Sea business, has decided to retire.

Both will remain with the group into 2016 to help with the changes.

Hide Ad
Hide Ad

Rolls said the move will cut out a layer of senior management, with the group instead comprising five businesses from January 1 - Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power Systems.

The heads of these businesses will report directly to Mr East.

Rolls said the revamp will “simplify the organisation, drive operational excellence and reduce cost”.

Mr East added the changes are the “first important steps in driving operational excellence and returning Rolls-Royce to its long-term trend of profitable growth”.

Related topics:Rolls-Royce