Rolls-Royce Crisis Tests East's Mettle After Silicon Fen Success
- Tech innovator must show new attributes to halt giant's slide
- `Inflexible' U.K. engine-maker faces top-down shakeup
A Trent 700 aircraft engine at the Rolls-Royce Holdings Plc factory.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
When microchip kingpin Warren East was named as the next chief executive officer of Rolls-Royce Holdings Plc in April, the aircraft-engine maker highlighted his “outstanding record of innovation” and “strong commitment to R&D.” Those aren’t the attributes the company most needs now.
After a profit warning Thursday wiped 2.5 billion pounds ($3.8 billion) off Rolls’s value, East is about to be tested on his ability to slash costs and rebuild the organization and management of the Airbus and Boeing supplier while doubling output of some the most complex machines in the world.