Rolls-Royce Restructure

Oct. 18, 2023

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

According to a Rolls-Royce press release, "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 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 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. We would like to thank Grazia for her contribution to the company.

"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.”