Floating production and mooring specialists SBM Offshore is cutting 1200 jobs and relocating its headquarters from Monaco to Amsterdam, the firm announced this morning.
SBM said: "In light of market conditions and in order to optimize the company's cost base, capacity requirements have been reviewed with the objective of creating a productive environment for performing teams and maintaining our core competencies and technological edge."
Image: SBM Offshore's N'Goma FPSO, which started production from ENI's West Hub development offshore Angola earlier this month.
SBM Offshore is not alone in cutting jobs in the current low oil price and high operating cost environment. Many majors have announced job cuts, as well as service firms.
Earlier this week, a UK report suggested 35,000 jobs would be lost in the period 2014-2019 in the UK North Sea offshore industry, as activity slows following record investment levels in 2013/14.
The 1200 jobs being cut at SBM Offshore are split equally between contract and permanent staff and will vary by country, based on local requirements, said the firm. The job reductions will be made between in the remainder of this year and into next year.
The move is expected to save about US$40 million annually, relating to company employees only, with some $25 million redundancy costs expected.
SBM said the move to Amsterdam would bring it closer to stakeholders in the Netherlands and would benefit from being close to Schiphol international airport.
Bruno Chabas, SBM Offshore's CEO, said: "Although we regret losing some of our colleagues, we believe these steps are necessary to deliver value to our stakeholders and drive profitable growth over time."
SBM Offshore employs more than 10,500 people worldwide, spread over five execution centers, 11 operational shore bases, the joint ventures with several construction yards and the offshore fleet of vessels.
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