Belfast Telegraph

Subsea 7 cuts 430 jobs in UK amid oil industry slump

Offshore engineering firm Subsea 7 has announced plans to cut up to 430 jobs in the UK, mostly in Aberdeen.

The global company said the job cuts are due to "continued difficult business and economic conditions in the oil and gas market".

Subsea 7 plans to cut its 9,200-strong worldwide workforce by 1,200 by early next year, and remove five vessels from its fleet.

The firm said consultations with staff in the UK, based in Aberdeen, Glasgow and London, have begun.

The changes are expected to bring 350 million US dollars (£240 million) in savings.

Last year, the company cut up to 410 UK jobs as part of a 2,500 reduction in staff worldwide.

Phil Simons, vice-president for UK and 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."

Jean Cahuzac, chief executive officer, said: " 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 deep water oil and gas production."