Italian oil and gas giant Saipem has unveiled a new three-year strategic plan designed to help the company face continued challenging market conditions.
Saipem says it will adopt a new, leaner, more effective and more efficient organizational model. The company is creating five divisions separated by sectors offshore construction, onshore construction, offshore drilling, onshore drilling, and a new entity for high added value engineering activities and services.
As part of the shake up it will reduce its headcount at European-based facilities by around 800. The cuts are in addition to the 8,800 workers the company decided to shed in 2015 as part of a restructuring to save $1.4bn.
Stefano Cao, CEO of Saipem, commented: “The downturn in our sector, which is lasting longer than initially expected, has affected market prospects and requires reduction in the value of the Company’s asset base. The Strategic Plan that we have just approved aims to respond to these challenges through the adoption of a new organizational model.”
Saipem said it is planning to achieve revenues of €10bn ($10.9bn) in 2017 and a net profit of €200m ($217.8m).