Oslo: London-headquartered subsea operator Subsea 7 has shed more than 1,000 from its workforce citing uncertainty in the subsea market.
In a results briefing, Subsea ceo Jean Cahuzaca put the job losses down to a “softening of the market as our clients look to reduce the cost of new field developments”. He said that the company identified trouble brewing in the subsea sector in late 2013 and took the decision to reduce headcounts in both Brazil and Norway, where the company shed 500 jobs in total during 2014.
Cahuzca also said that the company will look to reduce the size of the 39 vessel fleet by up to 10 vessels over the coming two years, by releasing ships nearing lease renewal and retiring some old vessels.
The company reported a net loss for 2014 of $381m off revenues of $6.9bn, a 9% revenue increase year-on-year. Excluding a $1.18bn impairment in the fourth quarter net income was $802m. Of the result, Cahuzaca commented: “Our strong overall performance in 2014 was achieved against a backdrop of a progressive deterioration in business conditions and the environment for our industry continues to be challenging”.