Rolls-Royce plc, the UK based engineering group that should not be confused with the luxury car maker, said it would launch a programme to restructure its business that involves maritime equipment and ship design, in the face of a weak outlook.

The programme would aim to simplify the organisation model, streamline senior management, reduce fixed costs and add greater pace and accountability to decision making. “Work will enhance plans underway to improve our management information, forecasting and business systems,” the company said in a statement.

Warren East, CEO, said in the statement: “While 2015 remains broadly as expected, the outlook for 2016 is very challenging. The speed and magnitude of change in some of our markets, which have historically performed well, has been significant and shows how sensitive parts of our business are to market conditions in the short-term.”

“At the same time I remain very confident about the opportunities before us and convinced that our long-term outlook is positive. Our industrial transformation is proceeding well and our core large engine business remains on track to gain significant market share and build a strong, cash generative platform for the future.”

The programme aims to achieve incremental gross cost savings of £150 million to £200 million per annum, with benefits accruing from 2017 onwards.