Electromagnetic Geoservices (EMGS) plans to further reduce its workforce in order to reduce wage expenses, but has not yet revealed how many jobs will go in this fresh round of cuts.
“The company will seek a global reduction in employee expenses of approximately 20% by using both temporary and permanent layoffs amongst others,” the Norwegian offshore survey company said in a filing today.
The cuts will come in addition to plans EMGS’ announcement in April, in which it said it would slash its global headcount by about 15% in order to cut costs by up to $10m a year.
Today, the Oslo-listed company said its onshore and offshore headcount reductions will follow different timelines, which will yield the intended cost reductions “gradually”.
“The market is expected to continue to be subdued until the oil price recovers and customers increase their E&P [exploration and production] budgets. Cost reductions and cost control will therefore continue to be important focus areas in the company,” Christiaan Vermeijden, CEO of EMGS, said.
“However, we will maintain a footprint in our core markets to be able to efficiently market our services and be ready when the market turns.”
EMGS has only reported one new deal since the year began: a $2.1m data licensing agreement signed in September, under which EMGS will provide an unnamed oil company with 3D CSEM data for the Barents Sea from its multi-client data library.