Eksplorasi.id – Rolls-Royce Holdings Plc is eliminating more than 200 positions from its management team as Chief Executive Officer Warren East extends a wide-reaching restructuring of the embattled enginemaker.
The additional cuts brings the total trimming of management positions under East’s reign to more than 600, a Rolls-Royce spokesman said in a statement Sunday in response to a Financial Times report outlining the plans. About 270 of those positions had been phased out as of July 28, the CEO said at the company’s half-year earnings report.
Rolls-Royce has been struggling amid a downturn in demand for marine engines and servicing revenues from its business jet turbines. The company targets savings of 30 million to 50 million pounds ($65 million) this year as part of a broader restructuring effort aimed at cutting spending by 200 million pounds by the end of 2017. The goal is to match margins achieved by competitors Pratt & Whitney and General Electric Co., implying savings of as much as 1 billion pounds.
The latest push “involves restructuring our management population and will result in a number of people leaving the business,” Rolls-Royce said in the statement. “This is part of our ongoing transformation program, designed to remove complexity and cost by simplifying our processes and our structure.”
Rolls-Royce shares rose 2.1 percent to 743 pence at 8:47 a.m. in London. The stock has climbed 31 percent this year, valuing the company at 13.7 billion pounds. East, who took over the leadership role from predecessor John Rishton in July last year, has said the enginemaker has suffered from a bloated management team and overly complex decision-making procedures.
The leadership change came as Rolls-Royce entered a demanding ramp up of engine deliveries for Airbus Group SE’s A350 XWB and A330neo aircraft, that will see the manufacturer double its output of engines to meet demand.
Rolls-Royce Holdings Plc is eliminating more than 200 positions from its management team as Chief Executive Officer Warren East extends a wide-reaching restructuring of the embattled enginemaker.
The additional cuts brings the total trimming of management positions under East’s reign to more than 600, a Rolls-Royce spokesman said in a statement Sunday in response to a Financial Times report outlining the plans. About 270 of those positions had been phased out as of July 28, the CEO said at the company’s half-year earnings report.
Rolls-Royce has been struggling amid a downturn in demand for marine engines and servicing revenues from its business jet turbines. The company targets savings of 30 million to 50 million pounds ($65 million) this year as part of a broader restructuring effort aimed at cutting spending by 200 million pounds by the end of 2017. The goal is to match margins achieved by competitors Pratt & Whitney and General Electric Co., implying savings of as much as 1 billion pounds.
The latest push “involves restructuring our management population and will result in a number of people leaving the business,” Rolls-Royce said in the statement. “This is part of our ongoing transformation program, designed to remove complexity and cost by simplifying our processes and our structure.”
Rolls-Royce shares rose 2.1 percent to 743 pence at 8:47 a.m. in London. The stock has climbed 31 percent this year, valuing the company at 13.7 billion pounds.
East, who took over the leadership role from predecessor John Rishton in July last year, has said the enginemaker has suffered from a bloated management team and overly complex decision-making procedures. The leadership change came as Rolls-Royce entered a demanding ramp up of engine deliveries for Airbus Group SE’s A350 XWB and A330neo aircraft, that will see the manufacturer double its output of engines to meet demand.
Source : Bloomberg
