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Rolls-Royce says it will cut two divisions

[LONDON] Rolls-Royce Holdings Plc will eliminate its aerospace and land and sea divisions, leading to the early departure of the divisions' respective heads, a spokesperson said on Tuesday, confirming a story in the Financial Times.

The spokesperson said the changes will be announced on Wedneday.

Tony Wood, head of aerospace, and Lawrie Haynes, head of the land and sea division, will leave the company before their stipulated tenure, the FT reported. Instead of two divisions, the overhaul would see the heads of five units - civil aero-engines, defense, nuclear, marine, and power systems - reporting directly to Chief Executive Warren East, the paper said.

A chief operating officer will be hired from outside the company next year. East said, "There will be some further structural changes" to the company, the FT reported.

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Colin Smith, director of engineering, will become group president of the company as part of the overhaul, the paper reported.