Aberdeen-based Wood Group is set to shed 300 jobs as a result of the ‘lower for longer’ crude oil price slump which has blighted the industry since prices crashed from a high of $110-barrel two years ago.
The company employs more than 6,000 people in the UK – and these expected redundancies will amount to about 5% of this total.
In total, more than 10,000 N. Sea workers have lost their jobs since the crude oil price crash began – mostly in Scotland – while along the wider UK supply chain, some 65,000 jobs have been lost since 2014.
In what the company said was a response to continuing cost and efficiency challenges affecting the N. Sea oil and gas sector, Wood Group will begin collective consultation with around 1,000 UK onshore employees from Monday – with ‘a reduction of around 300 positions anticipated’.
David Kemp, chief financial officer, said: “We are firmly committed to supporting the long-term sustainability of the industry in the North Sea and maximising economic recovery by ensuring we are fit for purpose, flexible and strongly equipped to deliver efficiently and effectively.
“To achieve this, and in response to a natural reduction in work-scopes, we are streamlining our structure and our processes to reduce costs and an inevitable outcome of this is an impact on our employee numbers.
“As ever, our commitment is to act compassionately and sensitively, supporting our people through this consultation process and we will make every effort to minimise the impact on them.”
A spokesman for the RMT union, said that the 300 posts was significantly higher than the it had estimated.