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Subsea 7 axes 1,200 more, cutting 39% of headcount since end 2014

Subsea 7 has announced plans to axe another 1,200 from its workforce by early 2017, which would see cut 5,400 staff since the end of 2014.

Marcus Hand, Editor

June 22, 2016

1 Min Read
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The Norwegian subsea services company announced on Wednesday it would be undertaking a second phase of global resizing and cost reduction prompted by “continuing difficult business and economic conditions in the oil and gas market”.

Subsea 7 said would be reduced its global workforce to 8,000 by early 2017 from 9,200 at present. The company has already shed 600 jobs this year having started out 2016 with a workforce of 9,800. By early 2017 Subsea 7 will have cut over 39% of its global workforce, some 5,400, from the end of 2014 when it employed 13,800 people.

It said that consultation with employees and employee representatives would take place on a local basis and that process had already begun in Norway and the UK.

In addition Subsea 7 said five more vessels would leave its active fleet by early 2017 based on stacking owned vessels and returning chartered vessels when existing contracts expire.

The company said the latest staff and fleet cuts would deliver cost savings of $350m a year, while the charge relating to the restructuring recognised in 2016 was expected to be less than $100m.

Despite cutting 39% of its workforce in just under two years Jean Cahuzac, ceo of Subsea 7, claimed they remained confident about the long-term future for deepwater oil and gas production.

“We are committed to retaining our core capabilities and developing our leading market position through a strategy focused on differentiation delivered by our people, assets and technology.”

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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