Rolls-Royce set to reveal senior management shakeup with dozens of departures
Rolls-Royce Holdings chief exec Warren East is set to announce a raft of job cuts from the company's senior manager team tomorrow.
Around one quarter of the senior managers – up to 50 in total – will leave over the coming months.
“We are giving details of the latest stage of our transformation to our own people," a Rolls-Royce spokesperson told City PM
"This involves the restructuring of our senior management and will result in a small number of people leaving the business. The change is part of a programme announced on 12 November 2015 that we expect to generate incremental gross cost savings of £150-200m per annum, with benefits accruing from 2017.”
East admitted that investor confidence was “not in a good place” after Rolls-Royce announced the cost-cutting programme.
In December last year the group announced that it was making cuts to its aerospace and land & sea divisions and said aerospace president Tony Wood and Lawrie Haynes, president of land and sea, would be leaving the company.
Earlier this month, Standard & Poor's (S&P) downgraded its outlook rating for Rolls-Royce from stable to negative. The ratings agency said near-term business challenges, particularly in the company's civil aerospace and marine divisions, led to its decision to downgrade.
S&P said the change to the outlook meant Rolls-Royce's rating could be lowered by one notch within the next year. The ratings agency added that it expected the group's profits to remain weak into 2017.
Rolls-Royce shares closed up 0.56 per cent.