18th May 2015 11:08
LONDON (Alliance News) - Rolls-Royce Holdings PLC on Monday said it is to accelerate its cost-cutting plans in its Marine division, with a further 600 jobs to be cut by the end of the year amid challenging market conditions for the unit.
The FTSE 100-listed company said earlier this month that it was on track with its previously-announced plans to cut 2,600 jobs this year, but the 600 outlined on Monday are in addition to those cuts.
"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," said Mikael Makinen, president of Rolls-Royce's Marine business, which makes ship propulsion systems.
"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 added.
Rolls-Royce said it expects the additional job cuts to have a "broadly neutral" impact on its 2015 profit and expects the move to generate around GBP25 million in savings from 2016 on.
Shares in Rolls-Royce were flat to 1,012.67 pence on midday Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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