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 per cent.

“(The) major restructuring will simplify the organisation, streamline senior management, reduce fixed costs and add greater pace and accountability to decision making,” it said in a statement ahead of a presentation to investors later on Tuesday.

Reuters