Oslo: John Fredriksen’s oil company, Archer, has cut its workforce by 1,200 in the first quarter. The company said the largest cuts in oil drilling are happening now in the United States and the North Sea. John Fredriksen is a major shareholder in the oil services company through his company Hemen Holdings holding 7.6% and indirectly through Seadrill with a 39.9% stake.
From Monday quarterly earnings results it emerged that Archer has cut about 200 more employees than previously reported.
The 1,200 redundancies correspond to 13.6% of the workforce.
“In addition, we have adapted compensation schemes, bonuses and other employee benefits to today’s challenging market. With further decline in activity in Latin America and the United States, we have decided to reduce staff by a further 300 to 400 employees,” the company said in its quarterly report.
The number of employees has been reduced to 7,600, according to the company, which did not provide any details of where the cuts have occurred.
“We expect a further reduction in drilling activity in the second quarter as previously announced reductions in both Norway and the UK will have full effect during the quarter,” the company warned.