5th Oct 2015 06:22
LONDON (Alliance News) - Aerospace and engineering group Rolls-Royce Holdings PLC on Monday confirmed a press report that it will cut a further 400 jobs in its Marine business by the end of 2016.
Rolls-Royce said the job cuts, which are being made in addition to the 600 already announced in the Marine business, were the result of the continued reduced demand for its services and products due to the downturn in the oil and gas market.
The group said profit and revenue guidance for the Marine business for 2015 remains unchanged and said the cuts will generate full-year savings of GBP40 million annually, with the majority of the early savings to be re-invested in research and development work.
The cuts will result in Rolls-Royce booking a GBP20 million charge this year and a GBP10 million charge in 2016.
"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," said Mikael Makinen, president of Rolls-Royce's Marine business.
By Sam Unsted; [email protected]; @SamUAtAlliance
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