REG - Rolls-Royce Holdings - Rolls-Royce creates more efficient organisation

Rolls-Royce HoldingsAnnouncement

17/10/2023 07:00

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RNS Number : 3599Q  Rolls-Royce Holdings plc  17 October 2023

17 October 2023

Rolls-Royce Holdings plc

 

Rolls-Royce to create simpler, more efficient and effective organisation

to continue to deliver world class products

 

 ·         Delivering better customer outcomes through increased focus on efficiency,
           simplification and enterprise-wide synergies to create a more agile business
 ·         A proposed 2,000-2,500 reduction in roles worldwide
 ·         Strengthening capabilities to ensure operational and commercial skill matches
           engineering and technical excellence

 

Rolls-Royce has today announced plans for a simpler, more streamlined,
organisation in the next phase of its multi-year transformation. 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
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.

The changes being proposed will also remove duplication and deliver cost
efficiencies. Our tight management of costs and headcount through 2023 has
ensured that we have minimised the overall reduction in headcount. It is
estimated that 2,000-2,500 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 also enable
engineering talent and technology to be used more effectively across the
business. 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 and we thank her for her contribution to
the Group.

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 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 to capture
synergies and scale to achieve greater effectiveness.

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."

Enquiries:

 Investors:                      Media:

 Isabel Green                    Richard Wray

 +44 7880 160976                 +44 7810 850055

 

About Rolls-Royce Holdings plc

1.     Rolls-Royce develops and delivers complex power and propulsion
solutions for safety-critical applications in the air, at sea and on land. Our
products and service packages enable our customers to connect people,
societies, cultures and economies together; they meet the growing need for
power generation across multiple industries; and enable governments to equip
their armed forces with the power required to protect their citizens.

2.     Rolls-Royce has customers in more than 150 countries, comprising
more than 400 airlines and leasing customers, 160 armed forces and navies, and
more than 5,000 power and nuclear customers. We are committed to making our
products compatible with net zero carbon emissions to meet customer demand for
more sustainable solutions.

3.     Annual underlying revenue was £12.69 billion in 2022, and
underlying operating profit was £652m.

4.     Capital Markets Day event to be held on 28 November 2023.

5.     Rolls-Royce Holdings plc is a publicly traded company (LSE: RR.,
ADR: RYCEY, LEI: 213800EC7997ZBLZJH69)

www.rolls-royce.com (https://www.rolls-royce.com/)

 

 

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