Bumi Armada to slash workforce as offshore slump bites

Bumi Armada to slash workforce as offshore slump bites

Kuala Lumpur: Malaysian offshore operator Bumi Armada is set to make organisational changes as it struggles to cope with poor market conditions.

Sources within the industry have informed Splash that 21 of 47 vessels in the company’s fleet remain idle, although Bumi Armada itself says this number is not accurate.

When approached by Splash for comment, Bumi Armada provided a statement about the reorganisation saying that “the recent movement in oil price has taken the world by surprise and companies, including Bumi Armada, have had to act swiftly to avoid bearing the full brunt of the downturn.”

It went on to say that the board has approved a reorganisation exercise to streamline the company, and that “the reorganisation involves the rationalisation of business units, disposal of selected assets and reassignment or retrenchment of employees where necessary.”

The company said the group-wide restructure will affect around 10-12% of the company’s on-shore employees across all job grades, in both local and foreign offices.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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