British engineering company Rolls Royce (LON:RR) is trading up nearly 3 percent this morning, after CEO Warren East announced a management restructuring designed to set the company back on track.

East, who was appointed CEO in July, has cut a layer of senior management that will see the heads of all five divisions of the company report to him directly. The move will aim to save between £150 – 200 million by 2017. In a statement, East said:

“The changes we are announcing today are the first important steps in driving operational excellence and returning Rolls-Royce to its long-term trend of profitable growth,” East said in a statement.

Rolls Royce have had to confront a difficult period recently, with its share price dropping after a succession of profit warnings. The company has announced thousands of redundancies as tough market conditions force it to streamline. This move will further that aim and “simplify the organisation, drive operational excellence and reduce cost”, the company said.

Rolls Royce is currently trading up 2.8 percent at 555.1 pence per share. It has a 52 week range of between 504.50 and 1061.00.

16/12/2015