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RR Chief has given a brutal assessment.

 The new chief exec­ut­ive of Rolls-Royce has given a bru­tal assess­ment of Bri­tain’s flag­ship engin­eer­ing group, telling employ­ees that it must trans­form the way it oper­ates or it will not sur­vive.

Rolls Royce

In a global address broad­cast to staff, parts of which were shared with the Fin­an­cial Times, Tufan Ergin­bil­gic warned that investors were los­ing patience with the FTSE 100 group.
"Every invest­ment we make, we des­troy value," he told employ­ees, adding that fin­an­cially, "we under­per­form every key com­pet­itor out there".
Elop, who also warned staff that the com­pany was stand­ing on a "burn­ing plat­form". Less than three years later, the nearly 150-year-old Finnish com­pany was sold to Microsoft.
Ergin­bil­gic said: "We do have a burn­ing plat­form, not because I say so but because of what I am going to share with you." The com­pany’s per­form­ance was "unsus­tain­able", he said.
Rolls-Royce’s recent his­tory is one of suc­cess­ive restruc­tur­ings. The com­pany is only just emer­ging from a sweep­ing over­haul launched by East in the wake of the pan­demic, includ­ing the loss of 9,000 jobs, to save £1.3bn in costs.
Although the com­pany is on course to have met its 2022 tar­gets for rev­enue growth and "mod­estly pos­it­ive" free cash flow, its bal­ance sheet remains laden with debt. Its shares have risen 22 per cent since the start of Janu­ary to 114p but remain far below their pre­pan­demic high of 337p.
The com­pany said that its new chief had been dis­cuss­ing "the need to sig­ni­fic­antly improve the per­form­ance of Rolls-Royce".
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Comments

  1. Liam27 January 2023 at 10:44

    Could we see the end of Rolls Royce in the next 2 years? Seeing what is happening in the world, I wouldn’t exclude it.

    ReplyDelete
    Replies
    1. Evan27 January 2023 at 12:06

      I don't want to think this is possible. Losing such a brand would be very bad for everyone. I hope they recover. They need to cut down costs and then, maybe they can survive. Hopefully they take drastic measures now, improving performance and reducing costs, so they can get through the year.

      Delete

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