Business

Rolls-Royce cuts 800 more jobs from its marine division

A Rolls Royce designed and equipped ship Image copyright Rolls Royce

Rolls-Royce is to cut 800 more posts from its marine division, after announcing 1,000 job cuts last year.

The firm, which depends on oil and gas-related customers for about 60% of its marine business, blamed the weakness in the energy sector for the cuts.

Rolls-Royce said the job losses would be made from mid-2017 in an effort to make savings of between £45m and £50m.

The marine business employs about 4,800 people in 34 countries, including about 400 people in the UK.

Of the UK workers, half are based in Bristol and the remainder are in offices in the Midlands and a manufacturing site in Dunfermline in Scotland.

The firm has not said in which countries the job losses will occur.

Mikael Makinen, Rolls-Royce marine president, said: "The ongoing market weakness that has followed the dramatic fall in the price of oil continues to have an adverse impact upon our order book and profitability.

"We have made significant progress in transforming Marine into a far more agile and simplified business than we were and we have to take further steps to address our cost base.

"Reducing our workforce is never an easy decision, but we have no option but to take further action beyond the changes we have made to date."

The cuts will involve members of the senior management team, Rolls-Royce said.

The company has been cutting costs for about three years in an effort to make its marine unit more competitive.

As well as plunging demand for marine engines and repairs, the aerospace firm has been hit by a slowdown in demand for high-margin aircraft engine servicing. Group profits are expected to halve this year.

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