AN EAST Lancashire MP has spoken of his concern after Rolls-Royce announced plans for a £200million restructure.

The embattled engine-maker, which has two sites in Barnoldswick, issued its fifth profit warning in less than two years earlier this month as a result of weak demand, and yesterday CEO Warren East outlined plans for a ‘major restructure’.

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Mr East said the changes will include job cuts to senior management, a reduction in fixed costs and greater pace and accountability on decision-making.

Pendle MP Andrew Stephenson, who worked closely with management and unions when 120 redundancies were announced at the firm earlier this year, said: “It is a concern that Rolls-Royce continue to struggle in tough market conditions.

Obviously, with so many people in East Lancashire employed at the sites in Barnoldswick any restructure announcement is worrying. Job losses at any level are sad news but it’s encouraging that they haven’t talked about any further job losses at the manufacturing sites in Barnoldswick.

“But I, along with other Lancashire MPs, will keep a close eye on the situation.”

The announcement has been met with relief by union bosses, who said a restructure at senior management level was something they had been talking about for a long time.

Jon Brough, Unite union representative at Barnoldswick, said: “I’m quite supportive of what Warren East said.

“He has come in with a fresh pair of eyes had a look at everything and said there are too many senior managers. They are taking too long to make decisions and they are costing the company a lot of money.

“He’s basically said there are too many chiefs and not enough Indians, which is something we have been saying for a while.”

Mr Brough also praised the company for how it had handled the recent job cuts and said he was happy that no compulsory redundancies were made.

Mr East said he was hoping the changes would achieve cost savings of between £150 million and £200 million per year, with benefits accruing from 2017.

He said: “As a group we are undergoing an unprecedented period of change.

“My review has underpinned my confidence about the opportunities before us and I am convinced that our long-term outlook is positive.

“It has also highlighted areas where we can simplify the way we work, inject pace into our decision-making and responsiveness, and improve our operational gearing and operational effectiveness.

“This is fundamental to ensuring Rolls-Royce best positions itself to compete for the long-term opportunities before us.”