Energy services group Subsea 7 is to cut 1,200 jobs after being forced into a second major restructure by the oil price crisis.
The group said it expected to make annualised cost savings of $350 million when the new efficiency measures were combined with those initiated at the start of the year. Charges relating to the resizing of the business are expected to be less than $100m.
The company said the move was in response to “continued difficult business and economic conditions in the oil and gas market.”
It said the redundancy consultation process had already begun in both the UK and Norway
The move will see the company reduce its global workforce to approximately 8,000 by early 2017.
The group said up to five vessels are scheduled to leave the current active fleet by early 2017, based on stacking owned vessels and returning chartered vessels when existing contracts expire.
The organisational structure of Subsea 7 is also being re-jigged with three new reporting segments – SURF and Conventional, i-Tech Services and Corporate – being introduced from July 1.
“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,” chief executive Jean Cahuzac said.
“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.
“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.”
