Rolls-Royce CEO warns of 'last chance' to change

STORY: The new CEO of Rolls-Royce says the jet-engine maker is on its 'last chance' to change.

Tufan Erginbilgic told staff the firm's performance was 'unsustainable' and a 'burning platform'.

That's according to a report in Britain's Financial Times.

Rolls-Royce said the CEO had told staff about the need to 'significantly improve performance'.

Shares fell as much as 4% Friday (January 27) after the report came out.

The stock had jumped 43% over the last three months, with investors confident about travel demand and the reopening of China.

The health crisis caused a crisis at the aerospace company as travel stopped.

Rolls-Royce was particularly hurt as it earns revenue on a per hour basis when planes fly using its engines.

One analyst said the CEO's comments showed a sense of urgency and suggested there could be more restructuring.

Former CEO Warren East was himself brought in to turn the company around seven years ago.

He carried out two major revamps during his time in charge.

In 2020 he announced plans to cut 9,000 jobs, and started an asset sale program .