Subsea 7 has provided details of its cost reduction programme to deal with the offshore downturn caused by Covid-19 and low oil prices.
The company plans to reduce its workforce of 12,000 by around 3,000 between now and the second quarter of next year. Two-thirds of the reduction will be from the company’s non-permanent workforce and one-third permanent employees.
Subsea 7 has an active fleet of 32 vessels, and is making plans to reduce the number by up to 10 vessels. This will be done through not renewing chartered tonnage and by stacking some of its own vessels.
It is expected the measures will deliver savings of around $400m annually from the second quarter of 2021 onwards.
John Evans, CEO of Subsea 7, said: “Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control. These measures to reduce our cost base will help preserve cash and protect our balance sheet strength, while maintaining our strong competitive position in core markets.”