Rolls-Royce (RR) plans to accelerate the transformation of its Marine business due to continuing weakness in the maritime market. As a result, about 800 jobs will be lost worldwide.
RR's Marine business supplies a range of technology and services to customers operating merchant, offshore and naval vessels. Planned measures include a further simplification of the business' structure, with a streamlining of the senior management team, and a series of cost reduction initiatives which will result in the loss of around 800 roles worldwide and an estimated £45-50 million of annualised savings from mid-2017. Costs of this restructuring are expected to be around £20 million, split between 2016 and 2017.
The proposals follow a series of cost reduction initiatives carried out over the past three years to improve the competitiveness of the Marine business. The proposed job reductions are in addition to the reduction of 1000 employees announced in May and October last year. The Marine business currently employs around 4800 people in 34 countries.
New R&D Centre and Expanded Service Hub
As part of the programme, investments are also being proposed to establish an R&D centre for the development of new propulsion products, and an expanded Services hub for Northern Europe, both in Ulsteinvik, Norway. The organisational changes will also increase the strategic focus on developing further electrical and digital technologies as the maritime industry shifts towards a more digital future where ship intelligence plays a greater role.
