Subsea 7 cuts 1,200 jobs amid oil price crisis

Energy services company Subsea 7 said it will cut 1,200 jobs — including several hundred in the Aberdeen area — after being forced into a second major restructuring by prolonged low oil prices.

The company said it expected to make annualised cost savings of $350 million when the new efficiency measures were combined with those initiated at the start of the year.

Charges relating to the resizing of the business are expected to be less than $100 million.

The company said the move was in response to “continued difficult business and economic conditions in the oil and gas market.”

It said a redundancy consultation process had already begun in the UK and Norway

The move will see the company reduce its global workforce to 8,000 by early 2017.

“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,” said chief executive Jean Cahuzac.

“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.”