© pinonsky dreamstime.com Electronics Production | May 26, 2015
RR Marine to lose 600 jobs
Rolls-Royce will accelerate its cost reduction programmes in its Marine business and also reduce the number of employees by a further 600 by the end of this year as a response to challenging market conditions.
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. 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, he adds” The company anticipate the proposals will have a broadly neutral impact on profits in 2015 and generate approximately GBP 25 million of benefits from 2016 onwards. The new reductions are in addition to programmes already underway to consolidate manufacturing at several locations in the UK, USA, Norway, Sweden and South Korea.