Offshore engineering company Aker Solutions is reducing its modification, maintenance and operations (MMO) business in Norway from four regional units to just one. Up to 900 permanent jobs may be lost in the process.
The jobs may be lost from Aker’s facilities in Stavanger, Bergen, Kristiansund, Trondheim, Tromsø and Sandnessjøen and offshore, the company said today. Some employees may be reassigned to other parts of the company.
The reduction process will begin immediately, with up to 450 jobs being lost. The rest of the process will depend on work levels, Aker said.
Aker Solutions employs 16,000 permanent employees in 20 countries, of which 5,000 employees are in the MMO area, including around 3,600 in Norway.
Since July 2014, Aker Solutions has shed around 1,300 permanent and temporary positions in MMO to adjust to the offshore market slowdown.
“These measures are painful but necessary to strengthen the competitiveness and longer-term potential of our Norwegian MMO business, which has suffered from a sharp drop in activity in Norway’s offshore services market,” said Luis Araujo, CEO of Aker Solutions.