Rolls-Royce is cutting down 600 strong marine employees as the British engineering firm struggles with falling oil prices.

BBC reported that the firm on Monday publicly announced plans to cut 600 workers at marine engine business, plus proposals to reduce the workforce by 5 percent (expected 2,600 people will lose their jobs) in November. The cost-cutting measures come after a turbulent time for the 109-year-old engineering group. Rolls-Royce made numerous profit warnings in 2014 and announced its first profit drop in the past ten years.

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In April, the engineering group was surprised by stating that CEO John Rishton will step down in July and Warren East will replace him, Arm Holdings' former boss.

According to Mikael Makinen, Head of the Marine unit, they are changing marine business while managing good development on cost as the impact of low oil prices means they have to pursue to seek more efficiency.  

Around 60 percent of the engineering unit's £1.7bn profit is related to the offshore oil and gas market.

Financial Times reorted that the firm said 50 percent of the 600 job cuts would be done in Norway, where most of the unit workers were located. It had warned in February that low oil costs could affect the firm's performance this year. 

On Monday, Rolls-Royce said the marine cuts would have a widely neutral effect on 2015 profit, however, would obtain benefits of £25m from 2016 onwards. The marine business of Rolls-Royce came under criticisms over the previous years as some investors have expressed issues over the firm's strategic direction and expansion.

Some shareholders have asked the group to concentrate on its main aerospace business; however, the group has stayed committed to the unit, sticking to its principle that an expansion is the solution to balance out the cynical nature of the aerospace division, which is up to 50 percent of turnover.

The marine business unit remains positive about the future prospect, and they are focused on staying in their position as a technology leader. It is said that they should still strive for cost-cutting for the company to grow, Makinen said during an interview.

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