600 to lose jobs at Rolls-Royce MarineNews // May 18, 2015
Mikael Makinen: "Rolls-Royce is transforming its marine business".
Rolls-Royce has announced that it will accelerate cost reduction programmes in its marine business and reduce the number of employees by a further 600 by the end of this year in response to challenging market conditions.
The announcement follows the company's Interim Management Statement on 8 May in which it confirmed that the year had started slowly and consequently a drive for further efficiencies is underway.
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.
"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."
Rolls-Royce anticipates that the proposals will have a broadly neutral impact on profits in 2015 and generate approximately £25 million of benefits from 2016 onwards.
The above-mentioned reductions are in addition to programmes already underway to consolidate manufacturing at several locations in the UK, US, Norway, Sweden and South Korea.