Rolls-Royce cuts top executives in management shake-up

The plans are part of a turnaround strategy designed to make cost savings of about £150-200 million a year

ValueAct could push for Rolls to shed assets not related to its core aircraft engine operations

(PA)

Rolls-Royce put an end to its current-two division structure and shake up management as part of revival plans.

The troubled engineering company, which investors include California-based activist investor ValueAct, is attempting to come back from five profit warnings, under new chief Warren.

The plans revealed on Wednesday, which are part of a turnaround strategy designed to make cost savings of about £150-200 million a year, mean the end for its current structure based around the aerospace and land and sea divisions.

Tony Wood, the president for aerospace who has been with the company for 15 years, and Lawrie Haynes, the boss of land and sea, will leave the company as a result.

Rolls will now have five arms - civil aerospace, defence aerospace, marine, nuclear and power systems - the heads of which will report directly to East.

Rolls will also appoint a chief operating officer in the new year.

“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,” Rolls said in a statement.

Earlier this week reports suggested that its submarine division, which powers the UK's Trident nuclear deterrent, could be nationalised as the Government seeks to defend it from potential takeover.