Subsea 7 Announces Cost Reduction Measures - 3000 Jobs To Go Worldwide
29th May 2020
Subsea 7 issued further details of the cost reduction programme, following initial guidance provided on 30 April 2020.
It is envisaged that the overall reduction in headcount would be approximately 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. Discussions with employee representatives will take place on a local basis and consultation will start soon.
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. It is intended that the reshaping of the fleet would take place over the next 12 months commensurate with the evolution of the Group's workload.
As previously indicated, these cost reduction measures are expected to deliver approximately $400 million in annualised cash cost savings from the second quarter 2021. In addition, capital expenditures will be reduced to minimal levels in 2021 and 2022.
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."
No details have yet been announced as to the exact locations of the job losses. Subsea7 has been a substantial employer at Wester near Wick for many years
Related Businesses
Related Articles
Published in the John O'Groat Journal today (10 January 2021) is the news that after a long career at Subsea7 Willie Watt Retires. Read the full story HERE.
Please be advised that Subsea 7 are about to commence the launch of a pipeline bundle into Sinclair's Bay. This operation will take between 24 - 36 hours and we require to open the Wester Bridge on the A99 to allow towheads to pass under and out to sea.
Subsea 7 will be moving the final two towheads from Wick Harbour to Wester Site tomorrow, 7th of August; leaving Wick Harbour around 09:00 (dates and times are subject to having suitable weather and Police availability). This move should be similar to previous towhead moves, leaving Wick Harbour and proceeding directly to Wester Site.
Subsea7 are about to commence the launch of a pipeline bundle into Sinclair's Bay. This operation will take between 24 - 36 hours and will require Subsea 7 to open the Wester Bridge to allow towheads to pass under and out to sea.
Subsea 7 will be moving 2 towheads for the Buzzard Project from Wick Harbour to Wester Site in the coming days. The first towhead move is much the same as a normal towhead move and it is planned to leave Wick Harbour on Friday 13th March at around 09:30 and proceed directly to Wester Site - see sketch below.
Subsea 7 will be moving 2 towheads for the Buzzard Project from Wick Harbour to Wester Site in the coming days. The first towhead move is much the same as a normal towhead move and it is planned to leave Wick Harbour on Friday 13th March at around 09:30 and proceed directly to Wester Site - see sketch below.
Subsea 7 will be moving 2 towheads for the Buzzard Project from Wick Harbour to Wester Site in the coming days. The first towhead move is much the same as a normal towhead move and it is planned to leave Wick Harbour on Friday 13th March at around 09:30 and proceed directly to Wester Site - see sketch below.
Please be advised that we are about to commence the launch of a pipeline bundle into Sinclair's Bay. This operation will take between 24 - 36 hours and will require Subsea 7 to open the Wester Bridge to allow towheads to pass under and out to sea.
To whom it may concern: Subsea 7 will be moving three towheads for the Equinor Snorre Project from Wick Harbour to Wester Site from Monday 2nd December. It is planned that the towheads will travel along the route through town (as in the photograph below) over three days (one per day) and we hope to complete the operation by Wednesday the 4th of December.
Subsea 7 will be moving three towheads for the Equinor Snorre Project from Wick Harbour to Wester Site in the next 2-3 days. It is planned that the towheads will travel along the route through town as in the photograph.
