Reports have it that Danish oil and gas company, Maersk Oil, may be planning to sack not fewer than 1,250 workers as part of its restructuring efforts ahead of 2016.
According to The Maritime First newspaper, Maersk Oil was adopting the gesture, on the basis of an intention to implement workforce reductions of 10-12 percent, across its business as the company pushes to cut costs by 20 percent, by the end of 2016.
The decision will result in 1,250 layoffs across the organisation during 2015, the company said.
The statement by the CEO, Jakob Thomasen, added:
“The move follows an extensive internal review of business activities and continued low oil prices”.
“These are difficult decisions for any business and my immediate concern is for the welfare of those affected directly by today’s news”
“We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015, and ensure we focus where we can see adequate returns from our most robust projects. This approach has seen us sanction mega-projects like Johan Sverdrup and Culzean during the year. We remain focused on longer term growth opportunities, which play to our technical strengths, and the continued safety of all our people and assets.”
Based on the announcement, the company’s business Units in Qatar and Norway will implement reductions in line with the 10-12% range, with slightly lower levels in the Danish operations, in Kazakhstan and in the company’s Copenhagen headquarters.
In the UK, the business has already outlined plans to reduce headcount by around 220 positions. This is linked to the retirement of the Janice asset and changes to the offshore rotation.