Paris: French offshore services giant Technip has announced that it will go through a major restructuring and cost reduction plan that will see their workforce reduced by around 6,000.
Technip made the move to accelerate cost reductions under the expectation of an even more challenging industry environment, and said the plan targeted savings of around €830m ($913.4).
In addition to staff reductions, the company will reduce its presence in some markets “where profitable business is unlikely” include selected countries in Europe, Asia and Latin America including Brazil. Despite the reductions, the company said it will reinforce its investment in key geographic and technology areas.
For the company’s subsea division Technip will focus cost reductions on markets where rates are under pressure, and plans to reduce its fleet size to 23 vessels, down from the 36 it was operating at the end of 2013.
“The slowdown in the oil and gas industry is prolonged and harsh. Therefore we have decided to accelerate our cost reduction and efficiency measures – which I know will have tough consequences for employees across the Group,” commented Thierry Pilenko, chairman and CEO of Technip.