Rolls-Royce to Start Second Round of Senior Management Cutsby
Fewer than 50 managers to be given notice internally Friday
Cuts are part of restructuring plans announced in November
Rolls-Royce Holdings Plc will make a second round of cuts to senior management on Friday after about a dozen top executives were let go in December as part of an effort to streamline decision-making and cut costs.
Fewer than 50 managers will be given notice internally as part of Rolls-Royce’s plan announced Nov. 12 to shave off at least 150 million pounds ($215 million) of costs a year by 2017, a spokesman said in an e-mail. The December cuts included Tony Wood, head of the engine maker’s aerospace division and Lawrie Haynes, head of land and sea.
Rolls-Royce Chief Executive Warren East, who was brought in last July after a series of profit warnings, is betting that a shake-up will help him gain control of an engineering behemoth whose share price has tumbled 18 percent since the November restructuring announcement.
“We are giving details of the latest stage of our transformation,” the spokesman said. “This involves restructuring of our senior management,” the company said in an e-mailed statement after the Financial Times reported the planned cuts.
The engine-maker’s stock rose 0.9 percent at 8:35 a.m in London. The company’s market value has tumbled by more than 6 billion pounds over the past 12 months.