LBO cuts 50
- Business & Finance
Norway’s Linjebygg Offshore AS (LBO) is one of many oilfield services suppliers forced to lay off workers this year as oil companies reduce spending.
The Molde-based firm today announced it will lay off 50 workers as a result of reduced demand in the oil and gas industry.
It said that all employees were informed of the news on Monday, November 3, 2014, adding that this is the first time the LBO has found itself in such situation.
Unless there is an influx of substantial orders within a very short time, LBO said, the layoffs will be executed by December 1 and will take effect in January, 2015.
LBO provides scaffolding, rigging operations, insulation, surface treatment and maintenance and non-destructive testing (NDT) to the Norwegian and international oil and gas industry.
Doors open for return
LBO said that while the company is growing internationally, the growth doesn’t fully compensate for the decline of demand in Norway, because the international projects are less labor intensive.
The company ended its announcement on an optimistic note saying: “We have undiminished faith in a good future for this industry in Norway and internationally. We therefore hope that most of those who now must leave us find the opportunity to come back later.”
Elsewhere in Norway, Haugesund-based Aibel last week said it would reduce its workforce by an additional 300 employees. The reductions are spread over all Norwegian locations, with emphasis on Stavanger, Oslo, Haugesund and Stjørdal.