British engineering company Rolls-Royce said it would launch a major restructuring program, 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. 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 ($302 million) per year he is targeting. Rolls-Royce Chairman Ian Davis said in a statement that the board was committed to providing East with the support he needed to implement the findings of his review.