Rolls-Royce restructuring results in management shake-up

Divisional structure of aerospace and land and sea to end

Troubled engineering group Rolls-Royce is to undergo a major business restructure in a bid to make cost savings amounting to £200 million a year.

The current divisional structure of aerospace and land and sea will come to an end, removing a layer of senior management. From 1 January 2016, Rolls-Royce will operate as five market-facing businesses, with the presidents of civil aerospace, defence aerospace, marine, nuclear and power systems reporting directly to the company's chief executive Warren East.

Rolls-Royce said the new structure would lead to a simplified organisation, “adding pace and driving operational excellence”.

As a result of these changes, Tony Wood (president aerospace) will leave the company and Lawrie Haynes (president land and sea) will retire. Both will remain with the business into 2016 in order to assist with the transition to the new structure.

Leicestershire-born Wood is an experienced engineer whose career started at the Dowty Group, before joining Rolls-Royce in 2001. Haynes, meanwhile, was previously chief executive at engineering consultancy White Young Green, before joining Rolls-Royce in 2009.

Warren East, chief executive of Rolls-Royce, said: “Tony has been with Rolls-Royce for 15 years, during that time he has contributed to many of the company's most significant achievements. Recently he has played a lead role in positioning our aerospace businesses for growth, launching next generation technologies and driving cultural change.

“Lawrie has been with Rolls-Royce for six years in a number of senior leadership positions. He has played a critical role in focusing our land and sea businesses on growth markets. His deep knowledge of mission critical engineering, and particularly of the nuclear industry has been of great benefit to the company.

“I would like to thank both for their excellent support since I became chief executive."

Colin Smith will be moving from his role as group director of engineering and technology to be succeeded by Chris Barkey, currently engineering director of civil large engines. Smith has been appointed group president, with effect from 1 January 2016.

Rolls-Royce has suffered a turbulent period of late, issuing five profit warnings in the spate of a few months. Thousands of redundancies are being lined-up, as the firm battles challenging markets and high fixed costs.