Company - - Dec 05,2016
After announcing a layoff for 1,000 jobs last year; British engineering firm and car maker Rolls-Royce Limited said, it would cut 800 more jobs from its marine division to save an extra £50 million a year.
The United Kingdom-based engineering and aerospace company Rolls-Royce announced that, it is going to lay off 800 jobs. This famous aero-engine manufacturing firm said, these cuts are a piece of a plan to save between £45 million and £50 million yearly from the mid of 2017 and also responding to weak demand from the energy and shipping customers.
The firm which depends on oil and gas-related customers for around 60% of its marine business, blamed the weakness in the energy sector for the cuts. Rolls-Royce’s marine business division employs around 4,800 people in 34 countries and operates across five industries namely-Defense Aerospace, Nuclear, Civil Aerospace, Marine and Power Systems; it includes around 400 people in the UK itself. The company has not declared in which all countries the job cuts will be planned; however, the firm confirmed that members of the senior management team will also be a part of this chip-off.
The President of Marine at Rolls-Royce, Mr. Mikael Makinen, said during a press conference that, “ongoing market weakness that has followed the dramatic fall in the price of oil continues to have an adverse impact on our order book and profitability.” He further added, reducing the workforce is never an easy choice for the company, but the corporation has no option but to take a further step beyond the alterations the corporation has made till date.
The proud manufacturer of ship engines, military jets and nuclear-powered submarines, is adamant on a turnaround programme for the entire business. The engineering and aerospace firm has been cutting budgets for about three years in an effort to make company’s marine business unit more competitive. Also, due to dipping demand for marine engines and repairs, the firm has been pushed by a slowdown in demand for high-margin airplane engine overhauling. The aerospace company revenues are expected to split fifty-fifty this year.