Saipem to chop 800 European jobs as black turns to red

Italian oil and gas industry contractor Saipem informed on Tuesday it will reduce its workforce in Europe by 800 positions over the next four-year period as part of its strategic plan for 2017-2020. 

Also on Tuesday, the Italian oil company posted a loss for the third quarter of 2016 compared to a profit in the prior-year quarter. 

Saipem said on Tuesday its board has approved the strategic plan, which identifies a series of measures that will allow the company to face more challenging market conditions, with the recovery expected to take longer than previously estimated. The basis of the company’s strategy make refocusing the business portfolio, de-risking operations, optimizing costs, making processes more efficient, and emphasizing technology and innovation,

According to the company, to achieve these objectives, it has been decided to adopt a “new, leaner, more effective and more efficient organizational model”.

Five divisions/companies will be created for the following sectors: Offshore Construction; Onshore Construction; Offshore Drilling; Onshore Drilling, and a new entity dedicated to engineering activities and services.

As a result of these measures, the company is reducing its headcount in its European based facilities by around 800.

During the third quarter of 2016, Saipem sank to a loss of 1.978 billion euros, after writedowns and impairments, compared to a profit of 54 million euros in the same period last year.

Saipem’s revenues were 2.61 billion euros in the third quarter, a 15% drop compared to 3.07 billion euros in the prior-year third quarter.

Net debt at September 30, 2016, amounted to 1.67 billion euros.

Offshore Energy Today Staff