Athens: Rolls-Royce is to lay off 600 employees from its marine division “in response to challenging market conditions” and the effects of low oil prices.
Around half of the redundancies will be made in Norway, where most of Rolls-Royce Marine’s employees and manufacturing facilities are located.
Other jobs will be cut around the world; all lay-offs will be made by the end of this year, the company said today.
“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,” Mikael Makinen, president of Rolls-Royce’s marine division, said in a statement today.
“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.
“We anticipate the proposals will have a broadly neutral impact on profits in 2015 and generate approximately £25m of benefits from 2016 onwards. The reductions announced today are in addition to programmes already underway to consolidate manufacturing at several locations in the UK, USA, Norway, Sweden and South Korea.”
Rolls-Royce’s marine segment employs around 6,000 people in 34 countries.
Ironically, Rolls-Royce Marine last year unveiled a concept for unmanned “drone” ships (pictured).