Hundreds face redundancy at oil firm
Subsea 7 are cutting 430 jobs in the UK, with most expected to go in Aberdeen
Hundreds more job cuts have been announced in the oil and gas industry.
Subsea 7 are reducing their total workforce by 1,200.
430 of those will be in the UK. Most of those will be onshore staff, and Aberdeen's expected to bear the brunt.
This is on top of a similar number of job cuts last year by the company.
They're also taking five of their vessels out of action in a bid to save $350 million a year.
Jean Cahuzac, Chief Executive Officer of Subsea 7, said: “Our new organisational structure reflects our focus on commercial and long-term strategic priorities as we adapt to the present low levels of activity and drive more efficient ways of working with our clients. 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.
“We remain confident in the long-term future for deepwater oil and gas production. We are committed to retaining our core capabilities and developing our leading market position through a strategy focused on differentiation delivered by our people, assets and technology.”
Phil Simons, Vice President for UK & Canada, said: “Today’s difficult decision is a regrettable consequence of the prolonged and challenging environment the oil and gas supply chain is now experiencing, particularly in the north-east of Scotland.
“Unfortunately, the rapid decline in project awards, increased cost pressures and market unpredictability, necessitates further streamlining of our structure and processes to protect our business and the skilled services we provide.
“I understand the dramatic impact these changes will have on our workforce and their families. I wish to reassure them that we will do all we can to support them through this process, to ensure they are treated with respect, compassion and sensitivity during this difficult time. Every effort will be made to limit the number of compulsory redundancies.”
Commenting on today’s announcement of job losses at Subsea 7, Neil Gordon, chief executive of industry body Subsea UK, said: “While hugely disappointing and devastating for those affected, these redundancies don’t come as a surprise. Our recent survey revealed that most subsea companies have seen a fall in revenues as a result of project delays or cancellations. There is no doubt there will be further job losses in subsea this year as the impact trickles down the supply chain. Until the oil price collapse, the subsea sector was worth around £9billion to the UK and supported 53,000 jobs, contributing significantly to our balance of trade with over £4billion in export revenues and recognised as a world-leader with 43% of the global market.
“Companies have to reduce costs, which inevitably involves cutting jobs, but we must be careful that we are not cutting too deeply into our capability, losing valuable skills we will need in the recovery, albeit a recovery that is going to be much slower than in previous downturns.”
Mr Gordon added: “We recently took these messages to Westminster because we need our political leaders to understand the importance of the sector and the challenges it’s facing. Investing in and supporting the sector is not just about the North Sea, it’s about protecting our globally recognised supply chain and its ability to drive up UK exports, safe-guarding and creating jobs in the longer term.”