Subsea 7 outlines cost reduction plans

Subsea 7 released further details of the cost reduction programme that it will implement to help it deal with the deterioration in the oil and gas market.

The firm said it will cut one quarter of its workforce by reducing its headcount by 3,000 from the global workforce of 12,000, by the end of the second quarter 2021. 

“It is anticipated that two-thirds of the reduction would affect the non-permanent workforce and one-third of the reduction would affect permanent employees,” Subsea 7 said in a statement.

Subsea 7 will also significantly reduce its active fleet of 32 vessels 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.

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.”