Houston-based OneSubsea is reportedly planning to cut 600 jobs out of its workforce of 900 by the end of 2017, with UK job losses expected to be high.
The Schlumberger company has confirmed this and explained it follows the decision to stop manufacturing activities at its Leeds factory.
“This is appalling news that came out of the blue. We knew that there was a downturn in the oil price, but we had no inkling about the scale of such job losses,” Unite regional officer Chris Daly, said.
UK Job Losses Reach Unexpected Scale
OneSubsea is blaming the job cuts on “the most severe downturn of the past 30 years”, which has had a severe impact over the company’s workload.
According to Unite, which has 300 members at OneSubsea, there has been an initial meeting with management this week, with more planned for next week.
“This is a devastating blow for the workers and their families and, more widely, it will have an adverse effect on the Yorkshire economy – these are skilled jobs that we can’t afford to lose as a manufacturing nation,” Daly added.
“This sad news reinforces the case that the government’s much wanted industrial strategy really needs to develop teeth quickly to protect such prized manufacturing jobs,” he stated further.
The trade union, who counts on 300 members at OneSubsea, plans to mitigate the job losses and offer its members “the maximum support at this difficult and worrying time”.
According to Unite, the threat “reinforces the need for a strong industrial strategy to protect such skilled jobs”.
Maersk Supply Cuts Jobs Worldwide
Last week, Maersk Supply Service also announced job cuts onshore, laying off 65 employees from offices worldwide in response to the continued market decline.
This will not affect offshore workers, who were already severely affected earlier in August, when the company decided to divest 20 vessels from its fleet and lay off 400 employees.
“Despite extensive cost reductions, declining demand in the offshore industry continues to put pressure on earnings,” Maersk Supply Service CEO Jorn Madsen, said at the time.