Rolls-Royce cuts 800 marine jobs

Estimated to save £45-50m of annualised savings from mid-2017, the planned measures include a further simplification of the structure of the business. This follows a continued weakness in the maritime market.

Mikael Makinen, Rolls-Royce’s president of marine, 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.”

Costs of this restructuring are expected to be around £20 million, split between 2016 and 2017.

As part of the programme, investments are also being proposed to establish an R&D centre for the development of new propulsion products, and an expanded Services hub for Northern Europe, both in Ulsteinvik, Norway.

The proposed job reductions are in addition to the reduction of 1,000 employees announced in May and October last year. The marine business currently employs around 4,800 people in 34 countries.

Warren East, CEO of Rolls-Royce concluded: “I am very supportive of Mikael and his team’s proactive efforts to optimise our Marine business in extremely challenging market conditions and at the same time to target investment on future opportunities.”

“The actions being taken will enhance the competitive strength and resilience of the business in what remains an attractive market for Rolls-Royce.”