UK-based Rolls-Royce said Monday it will lay off 600 employees at its marine subsidiary due to slowing business.
The lay offs will account for about 10 percent of the subsidiary’s workforce and will occur throughout the unit’s global operations, the company said.
About half of the job cuts will affect workers in Norway where a majority of the company’s 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. We will work closely with employees and their representatives as we manage this change,” Rolls-Royce Marine president Mikael Makinen said.
The company expects the layoffs to have a “broadly neutral” impact on its 2015 profits and anticipates the reductions to generate about $40 million in savings from 2016 onward.
Rolls-Royce said the lay offs are in addition to other programs to consolidate manufacturing at several locations in the United Kingdom, the United States, Norway, Sweden and South Korea.