The U.K. based aerospace and engineering company Rolls-Royce is to shed another 800 jobs from its payroll as it continues to shrink its struggling marine division.
The firm estimates annual savings of around £45 million to £50 million ($63 million) from the move and says the one-off cost of restructuring is expected to be around £20 million.
Mikael Makinen, President of Marine at Rolls-Royce said in a press release Thursday that "ongoing market weakness that has followed the dramatic fall in the price of oil continues to have an adverse impact upon our order book and profitability."
Following the announcement, shares in Rolls Royce spiked briefly but have since pared almost all session gains. Today's layoffs are in addition to announcements in May and October last year that saw 1,000 employees lost to the Marine business.
Makinen said the marine division remained fundamentally strong, a sentiment echoed in the release by group chief executive Warren East.
"I am very supportive of Mikael and his team's proactive efforts to optimize our Marine business in extremely challenging market conditions and at the same time to target investment on future opportunities. The actions being taken will enhance the competitive strength and resilience of the business in what remains an attractive market for Rolls-Royce," said East.