UAE-based offshore fabricator Lamprell has announced another round of job cuts today in a company update.
Lamprell says it has adapted to market pressures by continuing its programme of cost cutting and since May 2016 has undertaken a further 20% reduction in its administrative staff headcount which includes some redundancies at senior management level.
As the result of several large projects progressing to delivery or final stages of construction, the company has also released the related yard workforce.
Overall, Lamprell managed to reduce its workforce by around 4,000 people for 2016. It said the reductions will ensure it is well positioned as the market recovers.
“The board recognises and welcomes recent change in oil & gas market sentiment and the likelihood of stronger product pricing in 2017, especially as the year elapses. However, we also recognise that all our customer 2017 capital budgets are already established and in place, and that there is little expansive flexibility in the associated expenditures. For these reasons, the Company continues to believe that 2017 will prove a particularly cautious environment, and will continue to maintain tight control over expenditure and expenses and, more especially, continue to position Lamprell for work in future years,” commented John Kennedy, executive chairman of Lamprell.