Rolls-Royce’s new CEO has given an unsparing critique of the engineering company, saying it will not survive without transforming how it operates.
Tufan Erginbilgic, who took up the CEO role in January, told employees in a global address broadcast, parts of which were shared with the Financial Times, that the firm is underperforming all its key competitors, and that investors are losing patience.
From Rolls-Royce’s Derby manufacturing site, Erginbilgic said the business was a “burning platform” with an unsustainable performance. He further noted that this is a long-standing problem, not the fault of COVID.
Erginbilgic launched a “transformation programme” with the broadcast, with a focus on “efficiency and optimism.”
Tufan, who has a background in engineering, has built his career in international business including over 20 years with BP, with five years as part of its executive team. In his last role before leaving in 2020, he led BP’s downstream business, which included Refining, Petrochemicals, Service Station Network, Lubricants, Midstream operations and the Air BP jet fuel operation.
During Tufan’s tenure, the business achieved record profitability and delivered record-setting safety performance.
Rolls-Royce recently cut thousands of jobs as part of a cost cutting programme.
