North Sea firm EnerMech to cut 90 jobs
Oil and Gas company EnerMech have announced they will be cutting 90 jobs as well as reducing employee saleries.
Oil and Gas company EnerMech have announced they will be cutting 90 jobs as well as reducing employee saleries.
The Aberdeen engineering group, which employs 2300 people globally, said the changes were essential to address continuing low oil and gas prices.
EnerMech chief executive officer, Doug Duguid, said his objective was to ‘right-size’ the company in a market where oil, gas and LNG prices would remain lower for the foreseeable future.
In addition to a loss of an estimated 90 jobs in the UK and Norway, the company has announced a number of cost cutting measures which include a reduction in salaries and benefits and the removal of a number of ex-pat positions in international locations.
Mr Duguid said: “The oil and gas industry is facing up to the fact that it needs to recalibrate its approach on how it does business and we at EnerMech are reacting to a market in which I believe prices will remain lower for some time to come, and a new reality that low oil, gas and LNG prices, are here to stay.
“The industry is demanding greater collaboration and these changes form part of our long-term strategy to offer more integrated services and an alternative contracting model we believe is more suited to the changed market in which we operate. In reality, and regretfully, this means 90 posts in the UK and Norway will be lost, many of which will be at management level.”
"The changes to our European business are both prudent and necessary to ensure EnerMech remains sustainable in the long-term, while giving confidence to clients that we are aligned and responsive to their requirements.”