Another round of job cuts are on the way as Aker Solutions and FMC Technologies move to reduce their workforces in Norway.
Norwegian-based Aker Solutions said on Thursday (11 June) that it notified employees at its subsea services center in Agotnes, Norway, that between 150-200 positions will be affected due to a decline in activity in the Norwegian market.
“Our Norwegian subsea services unit has had a slow start to the year as oil companies reduce spending and delay some projects,” said Per Harald Kongelf, head of Aker Solutions in Norway. “This makes it necessary for us to adjust capacity in this area.”
At the end of 1Q 2015, Aker says it had 8000 subsea employees, and 3000 of them are centered in Norway, with the rest spread out in Brazil, Angola, Congo-Brazzaville, Malaysia, and the UK.
However, Aker Solutions isn’t the only one tightening their belts in Norway. Offshore.no reported on Thursday that Houston-headquartered FMC Technologies will cut an additional 400 jobs from the Norwegian market, also due to a decline in activity in that region.
In late January, FMC Technologies announced it had cut 120 jobs from its Agotnes, Norway, facility. When the company announced its quarterly statement a few weeks later in February, CEO John Gremp said the company had moved to reduce its total global workforce by 10% or approximately 2000 jobs.
When asked for comment, an FMC spokesman told OE: "FMC Technologies announced earlier this year that up to a 10% reduction in the company’s global workforce might be necessary due to the market downturn. We, like others, have had to adapt our capacity to the demanding market situation. We have spent time trying to find solutions to avoid downsizing, as this process is difficult for everyone involved.
"Unfortunately, the present level of staff was taken on to handle a much higher volume than what our current forecast shows. Therefore, a reduction is necessary to adjust staff numbers to the expected activity level and strengthen our future competitiveness. Up to 400 positions in our Eastern Region Subsea organization may be affected by these changes."
These cuts are only the latest to hit the industry as a whole.
Just last month, EPCI contractor McDermott International reduced its workforce by 1700. That same week, Subsea 7 announced it would reduce its workforce by 20%, meaning that by early 2016 it expects to cut 2500 from its global workforce.
In April, oilfield services firm Weatherford moved to cut 2000 jobs, taking the total reduction up to 10,000. Weatherford’s move followed Schlumberger announcement that same month that a further 11,000 jobs would be cut, taking its total job losses to 10% of its workforce.
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