Rolls-Royce to reduce costs as activist shareholder Value Act builds stake

Rolls-Royce’s new chief executive aims to strip out costs, rather than selling off chunks of the business, as he seeks to return the aero-engine company to growth.

After four profit warnings in just over a year, and with an activist shareholder pushing for change, Warren East is under pressure to outline a strategy after spending much of his first four months in the job in firefighting mode.

“The notion that we’re going to sell big chunks is just wrong,” Mr East told reporters yesterday.