Subsea 7 announces job cuts
Subsea 7 has issued further
details of its cost reduction programme, which includes reducing its headcount
by around 3,000 by the end of Q2 2021.
It is anticipated that two-thirds of the reduction will affect the non-permanent
workforce and one-third of the reduction will affect permanent employees.
Discussions with employee representatives will take place on a local basis
and consultation will start soon.
The active fleet of 32 vessels will be reduced by up to 10 vessels through
the non-renewal of chartered tonnage and the stacking of owned assets.
It is intended that the reshaping of the fleet would take place over the
next 12 months commensurate with the evolution of the Group’s workload.
These cost reduction measures are expected to deliver approximately $400
million in annualised cash cost savings from Q2 2021. In addition, capital
expenditures will be reduced to minimal levels in 2021 and 2022.
John Evans, Chief Executive Officer, said: “Faced with a significant
deterioration in the oil and gas market, we are taking swift and decisive
action to address the elements under our control. These measures to reduce
our cost base will help preserve cash and protect our balance sheet strength,
while maintaining our strong competitive position in core markets.”