Rolls-Royce to cut 600 jobs as Babcock profits rise

British engineering firm, Rolls-Royce, is set to axe 600 jobs in response to its struggling marine business and falling prices in the oil and gas market.

Having cut 2,600 jobs in the last year, Rolls-Royce has disclosed that the reductions will be made in all divisions, but that the majority will affect the Norwegian marine focused sector.

The 131-year-old manufacturing giant has promised that the move will have a “broadly neutral” effect on the company, with the long term result being a profit of £25million in benefits beginning in 2016.

Mikael Mäkinen, President of Marine Business at Rolls Royce, said: “While we are making good progress on cost, the effect of low oil prices means we have to continue to look for further efficiencies.”