Rolls-Royce announces “major restructuring” following string of profit warnings

Aeronautical engineering firm looks to cut costs and streamline production

Engine and power systems company, Rolls-Royce, has said that it is to announce plans to undergo “major restructuring”, after issuing five profit warnings over the last two years.

The company has cited lack of demand for new parts for old aircraft engines, as many airlines have upgraded to modern and more fuel efficient models. Meanwhile, sales of jet engines for corporate engines have rapidly declined.

The firm’s chief executive, Warren East said the company was looking to save an annual sum of between £150m-£200m as a result of the restructuring.

The overhaul would “simplify the organisation, streamline senior management, reduce fixed costs” and speed up decisions, East said.

The company had previously announced 3,600 job cuts across the group, and earlier this month the company said that the restructuring process could also hit some of its 2,000 senior managers.

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