LONDON -- As slumping oil prices weighs on demand for vessels, Rolls Royce (IW 1000/193) said on Monday that it will cut another 400 jobs at its marine division.
This is in addition to the 600 job cuts already announced in in May.
"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 Marine at Rolls-Royce.
"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."
The latest cutbacks are forecast to generate full-year savings of £40 million (US$61 million).
The group's marine division, which employs about 5,800 people in 34 countries, supplies technology and services to customers operating merchant, naval and offshore vessels.
Copyright Agence France-Presse, 2015