Global oilfield services company Archer has confirmed that it will be reducing its workforce by around 1000 – possibly including jobs at its base in Aberdeen.
The company is hoping to cut costs despite better than expected profits for the fourth quarter of 2014 with £390.7 million in revenue. Archer said while its results were “above expectations” there had been a rapid deterioration at the end of the year and the beginning of 2015 driven by the sharp decline in oil and expects revenue from the first quarter of 2015 to be between 20-25% lower.
A spokesman said: “As our customers are reducing their spending in light of a challenging macro environment we have received notice from several customers advising us of cancellations or a reduction of activity.
“This includes the cancellation of the two year drilling contract for Archer Emerald with Talisman, which was planned to commence in January 2016, and the White Rose engineering project for the design of a new platform in Newfoundland.
“It also included the reduction of drilling activity for platforms with Apache and Shell in the UK and BP in Norway as well as the planned change to inactive status for Fairfield and Marathon in the UK.
“We are working with our customers to manage the reduction in activity in an orderly and safe manner and we are adjusting our workforce, both onshore and offshore, to adapt to the lower activity levels.
“In addition we are closely collaborating with our customers in order to improve drilling efficiencies and reduce downtime in order to reduce the overall drilling costs.”
The company has said that the 1000 jobs accounted for around 11% of its staff and it is also looking to review its compensation, bonus and benefits plans. North Sea revenue for the fourth quarter was $175.2million, decreased by 12.6% compared to the third quarter of 2014.