Rolls-Royce plans to further transform its marine business to deal with the continuing impact of the sharp fall in oil prices, resulting in the loss of a further 400 jobs worldwide.
The company said in a statement that is would increase investment in research and development and further efficiencies, while building on cost reductions carried out over the past two years. There will be a focus on improving competitiveness by reducing costs seeing 400 staff to go in addition to the 600 announced in May.
Mikael Makinen, president – marine for Rolls-Royce, said: “Reducing our workforce is never an easy decision, but the continued weak oil price, and the need to become more competitive, means it is necessary, if we are to build a strong base from which we can successfully grow this business in the future.”
Rolls-Royce said it expects the proposals to generate a full year saving of £40m ($61m), with incremental benefits from 2016 onwards with much of the saving to be invested in increased research and development.