Aker Solutions has taken additional steps to cut costs and raise the competitiveness of its Norwegian maintenance, modifications and operations (MMO) business by implementing temporary salary reductions across its entire staff base.
From March, senior management will see their pay lowered by 10% while all other staff will see reductions of 5% for a period of 12 months, after which the reductions will be reviewed.
Per Harald Kongelf, head of Aker Solutions Norway, commented: “Reducing salary costs is one of multiple measures needed to safeguard our competitiveness and reinforce our ability to win more work in a market with unprecedented challenges.”
Aker’s Norwegian MMO business has been reducing staff numbers since July 2014 and has shed around 1,300 permanent and temporary positions in MMO to adjust to the offshore market slowdown. Last month it announced an additional 900 positions may need to be removed, and the reduction process begun immediately with nearly 450 jobs lost.
