(Bloomberg)
Rolls-Royce Group Plc, which is already eliminating about 2,600 positions globally, said it will cut an additional 600 jobs at its marine unit in the face of “challenging” market conditions.
The cuts, equivalent to about 10 percent of the workforce at the subsidiary, will be global in scope, though about 300 positions will go in Norway, where the majority of workers and manufacturing are located, Rolls-Royce said in a statement on Monday.
The company said this month that the year had gotten off to a slow start, necessitating additional efficiency measures. Rolls-Royce is switching chief executive officers, with John Rishton departing in July after four years in the job and handing over to East Warren East, the former head of U.K. chip manufacturer ARM Holdings Plc.
“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,” Mikael Makinen, the president of Rolls-Royce Marine, said in the release.
The measures will have little effect on earnings this year, while making a positive contribution of about 25 million pounds ($39 million) from next year onwards, according to the London- based company.
