Wärtsilä said it will trim 570 jobs in the Netherlands, about one third of its workforce there. It has not yet announced where the rest of the cuts will come, but says it will do so this spring.
The firm says it is moving most of its propeller and auxiliary engine manufacturing to China in order to be closer to the main markets for the marine industry.
"China has become a strong maritime centre and its growth will continue. The low activity in the global marine market continued throughout 2009," says Wärtsilä CEO Ole Johansson.
Despite the sharp downturn in the sector, Wärtsilä managed to increase its turnover and profitability last year. However this year it expects turnover to sink by as much as one fifth.
The company says the moves will save some 80-90 million euros annually.
Last year Wärtsilä cut about 600 jobs. Altogether it has nearly 19,000 employees.