Rolls-Royce to cut 600 jobs from marine division

Cost-cutting decision reflects tough market conditions

Rolls-Royce is to slash 600 jobs in its marine business by the end of the year.

The company said in a statement on its website that it needed to accelerate cost reduction programmes in response to challenging market conditions.

The announcement follows an interim statement on 8 May in which it confirmed that the year had started slowly and consequently a drive for further efficiencies was under way.

Mikael Makinen, Rolls-Royce, president – marine, said: “We are transforming our marine business and while we are making good progress on cost, the effect of low oil prices means we have to continue to look for further efficiencies.

“It is never an easy decision to propose reductions in our workforce, but it is a sign of the challenging market in which we operate. We will work closely with employees and their representatives as we manage this change.

“The future prospects for the marine business remain bright, and we are focused on maintaining our position as a technology leader, but we must drive further cost reduction today so that we are ready to grow tomorrow."

The marine business employs around 6,000 people in 34 countries, and while the reductions will be global, around half will be in Norway, where the majority of employees and manufacturing facilities are located.

Rolls-Royce said the reductions were in addition to programmes already underway to consolidate manufacturing at several locations in the UK, US, Norway, Sweden and South Korea.