Rolls-Royce Cuts Further 800 Jobs in Marine Business
December 01 2016 - 5:59AM
Dow Jones News
By Razak Musah Baba
LONDON--Rolls-Royce Holdings PLC (RR.LN) will reduce its marine
division's workforce by a further 800 as part of the company's plan
to speed up the unit's transformation.
The British aircraft-engine maker said Thursday that its plans
reflect the continuing weakness in the maritime market. The
proposed reductions are in addition to the unit's 1,000 job cuts
announced in May and October last year.
The company said its simplification of the business, senior
management team review and cost reduction initiatives will result
in the loss of around 800 roles worldwide and an estimated 45
million to 50 million pounds ($54.8 million to $60.9 million) of
annualized savings from mid-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 marine business currently employs around 4,800 people in 34
countries.
Rolls-Royce shares at 1010 GMT up 13 pence, or 1.9%, at 689
pence, valuing the company at GBP12.67 billion.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
December 01, 2016 05:44 ET (10:44 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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