Rolls-Royce is slashing 400 jobs from its marine division, blaming the fall in the price of oil and a need to cut costs.
The jobs cuts will come in management positions, according to a report in the Financial Times, and follow on from 600 factory job cuts announced earlier in the year.
The marine business employs a total of around 5,800 people.
Mikael Makinen, president of the company’s marine division, said in a statement on Monday: “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.”
The company expects full-year savings of £40 million ($US61 million), of which most “will be invested in increased R&D activity,” according to the statement.
Rolls-Royce is struggling. The group had its fourth profit warning in 18 months in July and investors are concerned that a strategy to diversify away from making aircraft engines isn’t paying off.
The company’s share price has fallen by around 25% in the past six months.