Rolls-Royce has revealed plans for “a simpler, more streamlined, organisation” in the next phase of its multi-year transformation, including significant job cuts.
It is said 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. It will apparently help Rolls-Royce build enhanced capabilities in key areas such as procurement and supply chain management, ensuring they are “as strong as the company’s engineering and technical excellence.”
Rolls-Royce says the changes being proposed will also remove duplication and deliver cost efficiencies. It is estimated that 2000-2500 roles will be removed globally. Rolls-Royce currently employs 42,000 people worldwide.
Focused on core business capabilities, Engineering Technology & Safety will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools. It will be led by Simon Burr, currently Director – Product Development and Technology, Civil Aerospace, who is joining the Executive Team with immediate effect. Grazia Vittadini, Chief Technology Officer, will be leaving the business in April 2024.
The proposals include creating a new enterprise-wide procurement and supplier management organisation to support the consolidation of group spend, leverage scale and develop consistent best in class standards. As well as delivering savings, a greater focus on these key areas will reportedly lead to improvements in customer service, reducing supply chain delays.
Enabling functions, such as Finance, General Counsel and People will also be brought together across Rolls-Royce, standardising activity and providing shared support.
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 to build a high performing, competitive, resilient and growing Rolls-Royce.”
