Subsea7 Cuts More Jobs

Oslo-listed global oil and gas contractor Subsea7 has announced a second phase of global resizing and cost cutting measures beginning this year, that will reduce its worldwide workforce to roughly 8,000 by early 2017, from the current level of 9,200. It has begun consultations with Norwegian and UK employees, but the company's statement did not say how many jobs would be lost in specific countries.

S-lay pipelay, among the core capabilities of Subsea7, (c) Subsea7

Up to five vessels are scheduled to leave its current active fleet by early 2017, as existing contracts expire. It expects the latest cuts, plus those initiated earlier this year, to realise $350mn of annualised cost savings. It said the charge related to its resizing will be recognised in 2016 and is expected to be less than $100mn. There will also be a reorganisation of its existing business units.

“The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle,” said CEO Jean Cahuzac. The contractor is among several to have reduced its workforce over the past two years.

Mark Smedley | www.naturalgaseurope.com