Athens: The dire state of offshore shipping markets has forced Oslo-listed operator Subsea 7 to cut the size of its fleet and workforce, and restructure its corporate organisation.
Subsea 7 said today its global workforce would be reduced by around 2,500 employees by early 2016.
This estimate, however, is far lower than projections made at the end of 2014, which forecast 13,000 jobs could be lost.
“Consultation with employees and employee representatives will continue to take place on a local basis and consultation processes have begun in Norway and the UK,” the London-headquartered company said of the downsizing process.
Subsea 7’s global fleet will shed 11 vessels, the company said. Chartered-in vessels will not have their contracts renewed and owned vessels will either be sold or laid up. The fleet stood at 39 vessels at the end of 2014, with five under construction.
“It is intended that the reshaping of the fleet will be phased over the coming 12 months, commensurate with the projected global workload as well as continued effective execution of projects,” the company explained.
“These cost reduction plans will allow us not only to adapt to present market challenges but also to maintain our competitiveness and the long-term viability of our business. This will enable us to emerge stronger once the downturn ends. Reducing employment is not a decision we take lightly but one that is necessary in today’s difficult oil and gas environment,” Jean Cahuzac, Subsea 7’s CEO, said in a statement today. “Deepwater oil and gas production remains a significant market with long-term growth potential.
“While implementing the restructuring of our organisation, we remain committed to preserving our core capabilities and investing in key enabling technologies to deliver cost-effective solutions to our clients through all stages of the oil price cycle.”