Rolls-Royce is to drop part of its carbon capture operation, as the firm’s CEO looks to cut costs and the company’s transformation programme moves at pace, according to Sky News.
Reports indicate that Rolls-Royce is to end work on creating a direct air capture product, transferring workers to other roles.
Insiders speaking to Sky News however said that the business would continue to work on a government-funded research project focused on direct air capture.
In January (2023) Rolls-Royce’s new CEO, Tufan Erginbilgic, gave an unsparing critique of the engineering company, saying it will not survive without transforming how it operates.
This month (May 2023) the Derby firm has hailed making “good progress,” with its financial performance “improving,” with Erginbilgic saying this reflects positive changes driven by Rolls-Royce’s transformation programme.
Chief Executive Tufan Erginbilgic said: “We are transforming Rolls-Royce into a high quality and competitive business with a strong balance sheet and growing profit, cash flows and returns. We are already benefitting from the actions we are taking as well as recovery and growth in our end markets.”
He added: “Work on the transformation programme is moving at pace. Our increased focus on efficiency and simplification is helping to keep costs down and has already identified savings, for example the closure of our R2 Factory venture. We are encouraged by the early progress of our commercial optimisation and working capital workstreams, with positive results expected to build as the year goes on. Our strategic review is on track and as previously indicated, we will communicate the findings and medium term targets in the second half of 2023.”
