UK-based Rolls-Royce has announced plans to reduce 400 marine jobs globally by the end of 2016, citing the sharp fall in oil prices.

The company’s latest decision is part of its plans to continue the transformation of its marine business through increased investment in research and development.

According to Rolls-Royce, the proposals will build on a series of cost-reduction initiatives carried out over the past two years with further focus on improving competitiveness.

"Reducing our workforce is never an easy decision, but the continued weak oil price, and the need to become more competitive, means it is necessary."

Rolls-Royce president marine Mikael Makinen said: "After many years of strong performance through to 2013, led by good growth in the oil and gas sector, our order book and profitability have been adversely impacted by the sharp and subsequently prolonged drop in the price of oil.

"Reducing our workforce is never an easy decision, but the continued weak oil price, and the need to become more competitive, means it is necessary, if we are to build a strong base from which we can successfully grow this business in the future."

In May, the company announced a reduction in the number of employees by 600 people by the year-end in response to challenging market conditions.

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Half of the global reductions announced will be in Norway, where the majority of employees and manufacturing facilities are located.

The proposals are expected to generate full-year savings of £40m.

Employing around 5,800 people in 34 countries, Rolls-Royce’s marine business supplies a range of technology and services to customers operating naval, merchant and offshore vessels.