Oil price drop prompts further job losses at Rolls-Royce
05 October 2015
Rolls-Royce has announced plans to make further reductions in its global Marine sector employee numbers as a result of the continuing impact of lower oil prices.
The company said it would continue the transformation of its Marine business through a programme of increased investment in research and development. The number of employees will be reduced by up to 400 worldwide by the end of next year, in addition to the reduction of 600 employees previously announced in May - also driven by the impact of the low price of oil and subsequent fall in orders.
“After many years of strong performance through to 2013, led by good growth in the oil and gas sector, our order book and profitability have been adversely impacted by the sharp and subsequently prolonged drop in the price of oil," said Mikael Makinen, president of Rolls-Royce's Marine division.
“This is a fundamentally strong business, but we have to take decisive action to position it for future growth, with a structure that is simple, efficient and effective," he added. "At the same time we will sharpen our focus on the marine technologies of tomorrow by significantly increasing our current rate of investment in research and development.
“Reducing our workforce is never an easy decision, but the continued weak oil price, and the need to become more competitive, means it is necessary, if we are to build a strong base from which we can successfully grow this business in the future.”
Rolls-Royce’s Marine business employs around 5,800 people in 34 countries, and supplies a range of technology and services to customers operating naval, merchant and offshore vessels.