Rolls-Royce Holdings announced plans today to cut 600 jobs by the end of this year at its Marine business within efforts to accelerate cost reduction programs in response to challenging market conditions.
Around 300 jobs will be slashed in Norway where the majority of employees and manufacturing facilities are located, whereas the remaining job cuts will take place across the globe, according to the announcement. Rolls-Royce’s Marine business employs around 6,000 people in 34 countries
“Today’s announcement follows our Interim Management Statement on May 8th in which we confirmed that the year had started slowly and consequently a drive for further efficiencies is underway,” the company said.
Mikael Makinen, Rolls-Royce, President – Marine, said that even though good progress on cost cutting is being made, 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,” added Makinen.
However, as explained, the future prospects for the Marine business remain bright.
“We anticipate the proposals will have a broadly neutral impact on profits in 2015 and generate approximately £25m of benefits from 2016 onwards,” the announcement reads.
The reductions announced today are in addition to programs already underway to consolidate manufacturing at several locations in the UK, USA, Norway, Sweden and South Korea, Rolls-Royce added.