The layoffs are expected to be completed by the end of the second quarter of 2021, with two-thirds of the reduction affecting non-permanent workforce and one-third affecting permanent employees.
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. The reshaping of the fleet would take place over the next 12 months in line with the group’s workload.
“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,” said John Evans, ceo of Subsea 7.
Subsea 7 said these cost reduction measures are expected to deliver approximately $400m in annualised cash cost savings from the second quarter 2021. In addition, capital expenditures will be reduced to minimal levels in 2021 and 2022.
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