Rolls-Royce Aerospace Chief to Exit as New CEO Begins Shake-Upby
President of struggling land and sea unit also will retire
Engine-maker is being split into five separate divisions
Rolls-Royce Holdings Plc’s aerospace division president will leave next year as new Chief Executive Officer Warren East restructures the company and slims the management ranks.
East will split the London-based engine-maker into five segments, each reporting directly to him. Tony Wood will exit and his duties will be taken over by Eric Schulz, who runs the commercial large-engine business, a company spokesman said late Tuesday. Lawrie Haynes, president of the troubled land and sea unit, will also retire.
The overhaul is the first step in a plan to cut 150 million pounds to 200 million pounds ($225 million to $300 million) from Rolls-Royce’s fixed cost base after a series of profit warnings under East’s predecessor. East said in November the company was unable to respond to changing market conditions, including slowing air-passenger demand in Asia and a collapse in oil prices.
Alongside Civil Aerospace, the remaining businesses will be split into four other divisions including Defence Aerospace, Marine, Nuclear and Power Systems, the spokesman said. This round of restructuring will affect less than a dozen senior positions, including Rolls managers who won’t leave the company. A new chief operating officer will be announced next year with a further update due in February.
The Financial Times reported on the changes earlier Tuesday.