Subsea 7 announced today it will implement resizing and cost-cutting measures starting this year.
The actions include resizing its global workforce to approximately 8,000 by early 2017, down from the current 9,200.
“Our new organisational structure reflects our focus on commercial and long-term strategic priorities as we adapt to the present low levels of activity and drive more efficient ways of working with our clients,” Subsea 7 Chief Executive Officer, Jean Cahuzac, said.
Subsea 7 To Cut 1,200 Jobs
The plan follows a continued difficult situation in the oil and gas market, the company explained.
“The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle,” he added.
“We remain confident in the long-term future for deepwater oil and gas production. We are committed to retaining our core capabilities and developing our leading market position through a strategy focused on differentiation delivered by our people, assets and technology,” he stated further.
Subsea 7 Saves $350m With Resizing
Overall, the cost-cutting and resizing measures are expected to deliver approximately US$350 million (£238.4 million) in annualised cost savings, together with the measures implemented since the beginning of this year.
In 2016, the Group expects to save less than US$100 million (£68.1 million) with the measures implemented so far.
In the meantime, consultation with employees and employee representatives – which will be done at a local level – has already started in Norway and in the UK.
The Group’s fleet of active vessels will be managed according to the projected workload, with up to five vessels scheduled to leave the current active fleet by the beginning of next year.
Structural changes will take effect from 1 July 2016 and includes new organisational and reporting segments.Last updated on 05:25PM - 23/06/16