Rolls-Royce shares have risen after it admitted it is cutting hundreds more management roles

Emma Haslett
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The company announced restructuring plans in November (Source: Getty)

Shares in Rolls-Royce rose in early trading after the troubled engineering giant admitted it is making another 200 job cuts.

Shares rose almost two per cent to 741.5p after the company said over the weekend it was planning the job cuts, all of which will be at management level, it was reported.

The company has undergone a massive restructuring under new chief executive Warren East, after a series of profit warnings shook investor confidence.

It's testament to how bad things are that shares shot up when it published its half-year results in July - despite the figures showing underlying pre-tax profits fell 80 per cent in the six months to mid-June.

That was partly thanks to the falling pound - the results showed it had taken a £2.2bn hit on its $29bn (£22bn) hedge book, which protects dollar-denominated sales from exchange rate movements.

In November last year East set out "major" restructuring plans, under which he expected to make savings worth £150m-£200m a year from 2017.

"As a group we are undergoing an unprecedented period of change," he said.

"Change in our mix of business and how we account for it. Change in our industrial footprint as we invest in a wide-ranging transformation. And change in demand for our products as we double our large engine output and manage reductions in demand in other markets"

The Telegraph reported a spokesman made clear yesterday the latest job cuts are part of that restructuring:

Last week we gave details of the latest stage of our transformation to our managers. This involves restructuring our management population and will result in a number of people leaving the business.

This is part of our ongoing transformation programme, designed to remove complexity and cost by simplifying our processes and our structure.

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