Rolls Royce will end Aerospace and Land and Sea (ALS) division as part of their management restructuring to reduce costs.
Rolls Royce will be removing a layer of senior management in the ALS division. From the first of January 2016, Rolls-Royce plans to operate five market facing businesses, with the Presidents of Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power Systems reporting directly to the Chief Executive, the company said in a statement Wednesday.
The new structure will clarify executive accountabilities, intensify leadership focus on operational performance and allow Rolls-Royce to build on its world class engineering capabilities. It is part of a transformation programme designed to make Rolls-Royce a more resilient business and generate incremental gross cost savings of £150-200m per annum, with benefits accruing from 2017. A further update on the cost and range of the programme will be given in February 2016.
Warren East, Chief Executive, said, “The changes we are announcing today are the first important steps in driving operational excellence and returning Rolls-Royce to its long-term trend of profitable growth.”
As a consequence of these changes Tony Wood (President Aerospace) has decided to leave the company and Lawrie Haynes (President Land & Sea) has decided to retire. Both will remain with the business into 2016 in order to assist with the transition to the new structure.