Rolls -Royce - "a burning platform" - new Boss
The new boss of Rolls-Royce has likened the engineering group to a “burning platform” and described the company’s performance as “unsustainable”.
Tufan Erginbilgic, who took over as chief executive from Warren East at the start of the year, told staff “we do have a burning platform, not because I say so but because of what I am going to share with you”. The former BP executive said the company’s performance was “unsustainable”, adding that “it is at a level [at which] it cannot continue. Rolls-Royce has not been performing for a long, long time. It has nothing to do with Covid, let’s be very clear.
“Covid created a crisis, but the issue in hand has nothing to do with it.”
Erginbilgic, who was speaking at Rolls-Royce’s UK manufacturing site at Derby in a global address broadcast to staff, parts of which were seen by the Financial Times, also said “every investment we make, we destroy value”, adding that “[financially] we underperform every key competitor out there”.
The British engineering group is best known for its engines for Boeing and Airbus long-haul aircraft and RAF fighter jets, and propulsion systems for the Royal Navy.
Last night a spokesman for Rolls-Royce said that Erginbilgic “had been speaking with all our people about the need to significantly improve performance. He was honest about our financial underperformance compared with our peers, laid out his priorities for all of us and stressed the need for everyone within the business to work together in order for Rolls-Royce to succeed.
“Our intention throughout this process is to be as open and transparent with our people as we can be. Although it is regrettable someone has leaked details of Tufan’s message, we will continue to speak with our people first, whenever that is possible given our obligations as a publicly-listed company.”