Rolls-Royce To Cut Another 800 Jobs At Marine Unit
LONDON, Dec 1 (Reuters) - British engineering company Rolls-Royce said it would cut a further 800 jobs in its marine business to save an extra 50 million pounds ($63 million) a year, responding to weak demand from shipping and energy customers.
The marine business, which depends on oil and gas-related customers for about 60 percent of its business and currently employs about 4,800 people with its main operations in Norway, has seen weak demand for new equipment and lower maintenance revenues as customers use their vessels less.
Rolls, which has been cutting costs for three years to make the marine unit more competitive, said the cuts were part of a plan to save between 45 million pounds and 50 million pounds on an annualised basis from the middle of next year.
The job cuts, whose location the company did not immediately specify, are in addition to the 1,000 posts it said would go last year.
The maker of engines for military jets, ships and nuclear-powered submarines, is a year into a wider turnaround programme for the whole business.
Rolls-Royce Chief Executive Warren East said in the long-term the company remained keen on the marine sector.
"The actions being taken will enhance the competitive strength and resilience of the (marine) business in what remains an attractive market for Rolls-Royce," he said in a statement.
The new marine restructuring plan would cost it about 20 million pounds, split between this year and next, Rolls added.
As well as plunging demand for marine engines and repairs, Rolls has been hit by a slowdown in demand for high-margin aircraft engine servicing, which has dragged on its performance with profit due to halve this year.
Shares in the company, which have fallen from last month's high of 794 pence since a capital markets day on Nov. 16 when East said he needed to speed up change at the engineer, were little changed at 676.5p at 1120 GMT.
(Reporting by Sarah Young; Editing by Keith Weir)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally