Seabed-to-surface services company, Subsea 7, is to cut 2,500 jobs in a bid to stay competitive during current market challenges – including more than 400 onshore jobs in the UK.
The company declined to say whether the jobs will be cut in its London or Aberdeen offices, but has called the redundancies “unavoidable.
The job losses are hoped to keep the company well positioned for future growth in what they have called “today’s difficult oil and gas environment”.
Phil Simons, UKVice-president, Subsea 7, said: “This announcement of the need to reduce our UK onshore workforce is regrettable but sadly unavoidable.
“These proposed redundancies follow a continued trend of project delays and cancellations witnessed across the UK’s oil and gas industry that have impacted our activity levels, making it necessary to size our business base to align with our workload as well as consolidate various functions across the UK.
“Subsea 7 UK will maintain its focus on providing clients with cost-conscious, fit-for-purpose solutions, in a move to competitively position the company for opportunities when the market improves.”
The company is also set to reduce its global fleet by up to 11 vessels over the next 12 months. At the end of 2014, the fleet consisted of 39 vessels with a further five under construction.
Jean Cahuzac, Chief Executive, Subsea 7, said: “These cost reduction plans will allow us not only to adapt to present market challenges but also to maintain our competitiveness and the long-term viability of our business. This will enable us to emerge stronger once the downturn ends. Reducing employment is not a decision we take lightly but one that is necessary in today’s difficult oil and gas environment.
“Deepwater oil and gas production remains a significant market with long-term growth potential. While implementing the restructuring of our organisation, we remain committed to preserving our core capabilities and investing in key enabling technologies to deliver cost-effective solutions to our clients through all stages of the oil price cycle.”
This is the latest in a string of announced job losses within the oil and gas sector, including the Shell and Taqa oil giants.