The Derby-headquartered power and propulsion specialist, which employs 42,000 staff globally, said the move forms part of making Rolls-Royce ‘a simpler, more streamlined, organisation’.
The proposed changes are aimed at removing duplication and delivering cost efficiencies. Rolls-Royce said it has minimised job losses through stringent management of costs and headcount through 2023.
In a statement, Tufan Erginbilgic, chief executive, said: “We are building a Rolls-Royce that is fit for the future. That means a more streamlined and efficient organisation that will deliver for our customers, partners and shareholders. Our business is full of committed, talented people and I believe these changes will enable them to build greater capability in areas that are key to our long-term success. This is another step on our multi-year transformation journey.”
Engineering technology & safety will become a single team across the group with responsibilities for product safety, engineering standards, process, methods and tools. The unit will be led by Simon Burr, currently director - product development and technology, civil aerospace, who joins the executive team with immediate effect. Grazia Vittadini, chief technology officer, will leave the business in April 2024.
Further proposals include creating a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend. Functions including finance, general counsel and people will also be brought together across Rolls-Royce, standardising activity and providing shared support.
Taken together, Rolls Royce anticipates the new structure will create a more agile business that is ‘better able to serve customers and continue to create and maintain world-class products’.
In May 2020 the impact of Covid-19 on civil aerospace saw Rolls-Royce shed 9,000 positions in an effort to save over £1.3bn on an annualised basis. September 2021 saw Rolls-Royce continuing its disposal programme with the sale of its subsidiary ITP Aero to Bain Capital Private Equity for approximately €1.7bn.
Rolls-Royce’s share price currently stands at 218.40, up 4.45.
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