Subsea 7 has announced cost cutting measures that will see approximately 3,000 of its 12,000 global workforce lose their jobs.
The company said the reduction in jobs would be completed by the end of 2021’s second quarter, with two-thirds of the cuts to be to non-permanent workers and the one-third to permanent employees.
The COVID-19 pandemic and the plummeting world oil price has seen several companies enact significant cost cuts, and Subsea 7 CEO John Evans said these were necessary for the company to survive.
“Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control,” he said.
“These measures to reduce our cost base will help preserve cash and protect our balance sheet strength, while maintaining our strong competitive position in core markets.”
Subsea 7 has not revealed where the job losses will occur but the company has hundreds of employees based in Australia, having won contracts with names like Woodside, Cooper Energy and Santos around the country.
The company was awarded a sizeable contract for engineering works on Santos’ Barossa project; however, the project has since been delayed in response to market conditions.
For more information visit the Subsea 7 website.
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