Dutch floating production specialist SBM Offshore has revealed a total of 3,200 positions were cut during 2015 and already more are planned for 2016.
SBM reduced its workforce by 3,200 positions during 2015, made up of 1,500 full-time and contract staff and 1,700 construction yard workers, leading to future annual savings of $80m.
However, the company has been hit hard by low order levels of just $248m last year and plans further reductions. It said that a further 400 positions are expected to be eliminated in 2016, which will cost the company $30m but generate a further $40m of annual cost savings.
Bruno Chabas, CEO of SBM Offshore, commented: “The reorganization of the Company continued in 2015 with the intention to reduce costs while retaining the core competencies that are the bedrock to recovery in a market upturn. It is critical that we protect our future and have the ability and the people to be well placed to benefit from the expected recovery.”
SBM said that while a recovery is unlikely before 2018, the company will maintain an engineering overcapacity to position itself for a future market upturn but should the industry downturn persist additional steps will be considered to manage its cost base.