British engineering company Rolls-Royce said it would launch a major restructuring programme, as its new chief executive Warren East gave further details of his plans to turn around the company. After four profit warnings in just over a year, the aero-engine maker was already under pressure to outline how it would return to growth, but it now faces additional impetus from activist shareholder ValueAct, which last week raised its stake to 10 percent.
"(The) major restructuring will simplify the organisation, streamline senior management, reduce fixed costs and add greater pace and accountability to decision making," Rolls said in a statement ahead of a presentation to investors later on Tuesday. At the presentation, East, who took over the CEO job in July, will update shareholders on the findings of a review of operations. He had already announced some of the plans, including the cost-savings of 150 million pounds to 200 million pounds per year he is targeting.