Rolls Royce CEO to announce culling of senior managers - FT | Reuters - Firstpost
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Rolls Royce CEO to announce culling of senior managers - FT | Reuters

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Rolls-Royce Holdings PLC's (RR.L) Chief Executive will on Friday announce job cuts from his 2,000 strong senior manager team, the Financial Times reported.

Most of the "few dozen" job cuts will affect those who report directly to CEO Warren East or his main executive team, the FT reported.

Warren East faces intense pressure to reverse the fortunes of the British jet-engine maker, not only because of four profit warnings, but also because U.S. activist investor ValueAct, which has amassed a 10 percent stake in the company, is pressing for a board seat and divestment of the company's marine engine business.

Some of Rolls-Royce's biggest investors have indicated that they would welcome ValueAct as a board member, although others remain opposed, the FT said.

In November last year, East said it was a matter for the board to decide whether the hedge fund would be given a seat.

San Francisco based ValueAct has been pushing the company to focus on its main aero-engine business, which contributes about half the firm's profits.

(Reporting by Ankush Sharma in Bangalore; Editing by Elaine Hardcastle)

This story has not been edited by Firstpost staff and is generated by auto-feed.

First Published On : Jan 29, 2016 01:45 IST

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