16th Dec 2015 06:30
LONDON (Alliance News) - Warren East, the new chief executive of Rolls-Royce Holdings PLC, is to axe the company's two divisions in a sweeping management shake-up, the Financial Times reported Tuesday.
According to report, Tony Wood, head of aerospace and a 15-year Rolls-Royce veteran, is leaving the group as part of an overhaul that will lead to the abolition of the company's divisional structure. Lawrie Haynes, head of the land and sea division since 2013, will also step down in 2016, earlier than expected. The moves are expected to be announced today.
In place of two broadly defined divisions, the heads of five units - civil aero-engines, defence, nuclear, marine, and power systems - will now report directly to Mr East as part of the executive management team.
The report indicated that a new chief operating officer will be recruited from outside Rolls-Royce next year.
The overhaul is the first step in a plan to cut GBP150 million to GBP200 million from Rolls-Royce's fixed cost base after a series of profit warnings under East's predecessor.
As part of the changes Colin Smith, a 42-year veteran who is director of engineering, is to become group president, remaining on the main board.
Copyright RTT News/dpa-AFX
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