Layoffs Continue to Plague Oil & Gas Industry

Published at 06:07PM - 26/07/16

The month of July has continued to be marked by a series of layoffs announced by oil and gas firms of different sizes and acting in various markets and regions, struggling to fight the continued low in crude prices.

Just this week, flotels operator Prosafe said it is about to implement a substantial reduction in its workforce across the group to cut down on costs.

“Jobs supported by the UK’s offshore oil and gas industry, currently under the severe strain of continued low oil prices, will have fallen by the end of 2016 by an estimated 120,000 since their peak in 2014,” Oil & Gas UK warned earlier in June.

Layoffs Continue to Plague Oil & Gas Industry

Last week, Royal Dutch Shell said it will implement structural changes that will result in a reduction of its workforce operating in the Gulf of Mexico to 25% fewer workers and contractor positions.

In May 2016, the supermajor had said it would cut a total of 2,200 positions in a response to low crude prices.

Also last week, Maersk Drilling Norge said that, at least 130 workers will lose their jobs as drilling rigs go off contract with Statoil, at the end of this year.

In a similar move, Royal Boskalis Westminster announced in mid-July that it is taking 14 vessels out of service, out of a total of 24 vessels to be taken out of service in the next two years, resulting in the loss of 650 jobs during the period.

Job Cuts Across the Industry Hit Firms of All Sizes

RigNet communications provider is also implementing layoffs, reducing approximately 12% of its employee base across the organisation, while oil services giant Schlumberger said it has released more than 16,000 workers during the first half of this year.

In the meantime, Keppel Offshore & Marine revealed it has also cut thousands of jobs in the first half of 2016 – approximately 9,400 or 16% of its staff in Singapore and overseas, while subcontractor staff in Singapore was further reduced by another 670 people.