Rolls-Royce share price edges down as it announces plans to cut 600 jobs in its marine business

Jessica Morris
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The company said the job cuts will take place in its marine business (Source: Flickr/Rolls-Royce)

Roll-Royce has announced plans to cut 600 further jobs in its marine business by the end of this financial year, amid challenging market conditions.

This will be in addition to plans to lay off 2,600 staff - including its finance director - announced in November.

And while the reductions will be global, around half of the job losses will be in Norway, where most if its employees and manufacturing facilities are located.

"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," said Mikael Makinen, president of Rolls-Royce's marine division.

The engine maker expects the extra job cuts to have a "broadly neutral" impact on this year's profit and also said it expects the move will result in around £25m in savings from 2016 onwards.

Shares in the company were down about 0.6 per cent at 1,007p in early afternoon trade.

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