Rolls-Royce is planning to cut more jobs in the Marine Division

Rolls-Royce is planning to cut almost 400 jobs in its marine division according to a reliable source. The company which has been reported a series of losses this year is expected to perform the job cuts as soon as next week. It is believed that the job cut done as a way for the company to stay profitable.

The cut was first announced by the newly appointed CEO, Warren East according to the Financial Times. This comes as the company had previously reported a consecutive profit decline in 18 months. Sources said that the job cut will be affecting the Scandinavian's management team only.

East is planning to shift the company's focus from the country towards Asia as the production cost is lower there as reported by Reuters. By cutting the management cost, the company could rebase its cost. However, he is expected to maintain the company's research team in the northern Europe.

The business in the marine sector has been declining since last year as the result of lower oil price according to the Telegraph. This is the second job cut announced after the last work cut which saw the company reducing its workforce by 15 percent. The company has cut about 600 jobs in the company's marine division in Norway. As for now, the company has cut almost 2,600 jobs in just 18 months since November last year.

Rolls Royce expected that both job cuts will save the company's marine business cost by almost £50 million within 18 months. The first review of whether the action success or not will be known as early as November. Profit from the marine sector decline by £124 this year compared to its underlying profit report of £262 million in 2010.

Investors, including ValueAct, has been pressing the company to focus its production in the civil aero-engine business alone as it is deemed as the most profitable industry compared to the marine sector. ValueAct is the company's biggest shareholder with 5.4 percent stake.

However, East said that he might consider entering the marine sector again in the future when the oil price stabilised again. As for now the company's spokesperson is unavailable for comment when contacted by the press.

Previously, Rolls-Royce had withdrawn from the production of the small engines which is being produced especially for the single-aisle aircraft and focusing mainly on the bigger engine. The move in considered as a big mistake by many investors as there is a high demand in that sector previously.