Firm blames order shortfall
Further blow to Aberdeen as oil firm axes 430 jobs
Aberdeen is expected to bear the brunt of the latest cutbacks in the North Sea as offshore oil and gas firm Subsea 7 announced plans to axe up to 430 jobs in the UK. These follow 410 job losses announced by the firm last year.
The global subsea engineering company said most of the latest batch will be in Aberdeen and are among 1,200 that will go worldwide.
It said the action was needed because of “continued difficult business and economic conditions” in the oil and gas market.
Subsea 7 said it remained “fully committed to preserving the critical skills, expertise and assets it requires to realise greater project value for its North Sea clients”.
Phil Simons, vice president for UK and Canada, said: “Today’s difficult decision is a regrettable consequence of the prolonged and challenging environment the oil and gas supply chain is now experiencing, particularly in the north-east of Scotland.
“Unfortunately, the rapid decline in project awards, increased cost pressures and market unpredictability, necessitates further streamlining of our structure and processes to protect our business and the skilled services we provide.
“I understand the dramatic impact these changes will have on our workforce and their families.
“I wish to reassure them that we will do all we can to support them through this process, to ensure they are treated with respect, compassion and sensitivity during this difficult time.
“Every effort will be made to limit the number of compulsory redundancies.”
Commenting on today’s announcement of job losses at Subsea 7, Neil Gordon (pictured), chief executive of Subsea UK, said: “While hugely disappointing and devastating for those affected, these redundancies don’t come as a surprise.
“Our recent survey revealed that most subsea companies have seen a fall in revenues as a result of project delays or cancellations. There is no doubt there will be further job losses in subsea this year as the impact trickles down the supply chain.
“Until the oil price collapse, the subsea sector was worth around £9billion to the UK and supported 53,000 jobs, contributing significantly to our balance of trade with over £4billion in export revenues and recognised as a world-leader with 43% of the global market.
“Companies have to reduce costs, which inevitably involves cutting jobs, but we must be careful that we are not cutting too deeply into our capability, losing valuable skills we will need in the recovery, albeit a recovery that is going to be much slower than in previous downturns.”
Mr Gordon added: “We recently took these messages to Westminster because we need our political leaders to understand the importance of the sector and the challenges it’s facing. Investing in and supporting the sector is not just about the North Sea, it’s about protecting our globally recognised supply chain and its ability to drive up UK exports, safe-guarding and creating jobs in the longer term.”