Few corporate comebacks are as striking as the one unfolding at Rolls-Royce. Under CEO Tufan Erginbilgiç’s leadership, the aerospace powerhouse has seen its share price soar by 500% in just two years, while its market value has swelled by more than US$70 billion. Profit targets have been met well ahead of schedule, and investor confidence has returned with a vengeance.

But the road to revival has been anything but smooth. Erginbilgiç’s strategy – marked by tough decisions, streamlined operations, and a relentless focus on execution – has upended traditional ways of working.

The most controversial move: laying off 2,500 employees, primarily managers, in a bid to cut bureaucracy and accelerate decision-making.

The results speak for themselves, yet his leadership raises an enduring question: when does bold action cross the line into ruthless leadership?

A 'burning platform' – confronting hard truths

When Erginbilgiç took the reins in 2023, Rolls-Royce was a company on the back foot. The aftershocks of the pandemic had left the business floundering, burdened with unprofitable contracts and a declining market position. Air travel had collapsed, dragging Rolls-Royce’s financial health down with it. The company needed urgent intervention, and Erginbilgiç wasted no time in setting the tone.

The CEO delivered a blunt message to his 42,000-strong workforce: the company was standing on a “burning platform”. In other words, there was no room for complacency – it was time to act or face dire consequences. “If you don’t have a strategy that can cascade down to 42,000 people, it won’t get delivered,” he told the Financial Times.

His no-nonsense approach shook employees but also focused them on the task at hand. It was a moment of reckoning, and the workforce had little choice but to rally behind the plan.

Tough calls, clear goals

The first major move was slashing 2,500 managerial roles – an unpopular yet decisive step designed to strip away unnecessary layers of bureaucracy. While mass layoffs often draw criticism, Erginbilgiç viewed them as essential to restoring agility and sharpening the company’s competitive edge.

Alongside restructuring, Rolls-Royce introduced 17 key performance targets to guide its recovery. One of the most pressing objectives was improving engine uptime – minimising losses from costly repairs and inefficiencies that had long plagued profitability. The strategy was built on urgency, or as Erginbilgiç put it, "pace and intensity".

The CEO explained: “If you don’t put scores on the board quickly, you will lose people. When you continue to deliver, suddenly more and more people believe.”

To sustain momentum, Erginbilgiç prioritised employee engagement. He spearheaded workshops for 500 employees, fostering a culture of problem-solving and innovation. He also tapped into the organisation’s collective intelligence, unlocked fresh ideas and instilled a sense of ownership among employees.

Erginbilgiç’s leadership mirrors the strategies of other corporate leaders who have successfully revived struggling organisations. Those who understand that while bold decisions may be unpopular in the short term, they can be transformative in the long run.

Rolls-Royce’s resurgence is proof that tough choices, when paired with a clear vision, can put a company back on solid ground.

Beyond survival: Revving up for the future

As the aviation sector recovers, Rolls-Royce is no longer in survival mode – instead, it is positioning itself for sustained success. The company’s renewed focus on execution and accountability is setting the stage for long-term growth, particularly as demand rises for fuel-efficient and sustainable aircraft engines.

But challenges remain. The industry is shifting towards net-zero targets, and competition is fierce. The ability to maintain momentum while innovating for the future will determine whether Rolls-Royce’s transformation is truly built to last.

Erginbilgiç has indeed proven that leadership is not about making easy choices but making the right ones.

Rolls-Royce’s turnaround is a reminder that in business, as in aviation, altitude is only achieved through thrust. And those willing to push forward – despite turbulence – are the ones who soar.