Ensco Drilling To Cut Further 14% Of Workforce

Published at 08:57AM - 09/09/15

Offshore drilling contractors, Ensco, have announced further cuts to its workforce.

In a press release, it stated that it needed to cut further operating costs and plans to make savings across multiple departments.

The London based firm said its biggest cut would come from slashing its onshore support staff by as much as 14%.  In doing so, it believes it will achieve annual savings of US$30 million.

Ensco is also looking to reduce the costs of its offshore workforce by 15% from previous estimates of 9%.

Offshore Drilling Downturn

Ensco have said the global offshore downturn has hit its Asia-Pacific and Brazil operations disproportionately. The firm said it is therefore moving its current five business unit model into three.

As part of the move, Ensco’s Brazilian operations will report to the North & South America Business Unit based in Houston, whilst its Asia-Pacific operations will report to the Middle East, Africa, Asia & Pacific Business Unit based in Dubai.

The offshore drillers said its Europe and the Mediterranean Business Unit are unchanged and continue to be based in Aberdeen.

Ensco Chief Executive Officer and President, Carl Trowell said, “We recently streamlined our global operations reporting structure and have taken additional steps to reduce expenses.”

“In total, the actions we have taken year to date to reduce onshore support positions will generate a combined savings of $57 million on an annual basis.”

“Steps taken to adjust discretionary compensation plans will reduce offshore unit labor costs by a total of 15% compared to 2014 levels.”

“Disciplined expense management of marketed warm-stacked rigs will also generate incremental savings.”