LUXEMBOURG – Subsea 7 (Oslo Børs: SUBC) has outlined cost reduction measures in light of a declining workload.
The contractor plans to reduce its global workforce by around 2,500 by early 2016. It will also trim its vessel fleet by up to 11 (the total was 39 at the end of 2014, with five more under construction), via non-renewal of charter vessels and either disposal or stacking of owned vessels.
Re-shaping of the fleet will be phased over the next 12 months, taking into account the projected global workload and ongoing execution of projects.
CEO Jean Cahuzac said: “These cost reduction plans will allow us not only to adapt to present market challenges but also to maintain our competitiveness and the long-term viability of our business. This will enable us to emerge stronger once the downturn ends…
“Deepwater oil and gas production remains a significant market with long-term growth potential. While implementing the restructuring of our organization, we remain committed to preserving our core capabilities and investing in key enabling technologies to deliver cost-effective solutions to our clients through all stages of the oil price cycle.”