Rolls-Royce to cut 400 more jobs in marine business

Rolls-Royce has announced plans to cut another 400 jobs in its marine business, on top of the 600 job cuts already announced in May.

The FTSE 100 company said the job cuts are due to the low price of oil and a subsequent fall in orders. They will be carried out by the end of 2016 leaving a headcount of around 5,000 in the division.

It is expected to save the company £40m per year, and most of the initial savings will be invested in increased research and development activity.

It’s a fraction of the £1.2bn spent on research and development in 2014.

Rolls-Royce's president of the marine division Mikael Makinen said the decision comes after years of strong growth through to 2013.

“This is a fundamentally strong business, but we have to take decisive action to position it for future growth, with a structure that is simple, efficient and effective.

“At the same time we will sharpen our focus on the marine technologies of tomorrow by significantly increasing our current rate of investment in research and development.”

The company said despite the redundancies and reinvestment, its profit and revenue guidance as set out in July remains unchanged.