Turbine maker Rolls-Royce (LON:RR.) is slashing 400 jobs in its ship engine business to combat the impact of lower oil prices.
Rolls said the cuts in the marine power division would take place worldwide by the end of next year, on top of 600 job reductions unveiled in May.
The company said it would invest most of the early savings from the cuts in increased research and development.
The marine business provides engines and equipment for the offshore oil & gas industry, which has been cutting costs as oil prices have fallen.
Rolls said profit and revenue guidance for the division, as set out in July, remained unchanged.
President of the marine business, 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.
"This is a fundamentally strong business, but we have to take decisive action to position it for future growth."
Shares in Rolls rose 14.5p or 2% to 719p in the first hour of trading in London.