Subsea 7 to continue “resizing” due to market conditions
Subsea 7 is set to launch a second phase of global resizing and cost reduction measures in view of continued difficult business and economic conditions in the oil and gas market.
The company plans to resize its global workforce to 8,000 by early 2017, down from the current level of 9,200.
Consultation with employees and employee representatives will take place on a local basis and consultation processes have begun in Norway and the UK.
Subsea 7’s fleet of active vessels will be managed commensurate with the projected workload, while retaining capability and maintaining a global presence.
Up to five vessels are scheduled to leave the current active fleet by early 2017, based on stacking owned vessels and returning chartered vessels when existing contracts expire.
These cost cutting measures, together with those already that began at the start of 2016, are hoped to save around US$350 million in annualised cost savings. The charge related to the resizing will be recognised in 2016 and is expected to be less than USD 100 million.