SBM Offshore sees no market recovery before 2018. Cuts more jobs
SBM Offshore, a Dutch-based provider of floating production systems to the international offshore oil and gas industry, will lay off more workers in 2016.
To remind, the company in 2015 slashed around 3,200 positions, of which 1,500 were full-time employees and contractor staff.
According to SBM, the remaining 1,700 were construction yard positions related to the winding down of projects under construction. While restructuring charges totaled $55 million over 2015, SBM expects to generate annual savings of around $80 million.
In its full year report on Wednesday, SBM Offshore said that due to the persistent downturn in the oil and gas industry, it would lay off 400 workers.
SBM Offshore expects the new layoffs will cost it around $30 million, but the move is also expected to generate $40 million in cost savings. The company did not specify where exactly within the organization the cuts would be made.
While SBM Offshore said that in 2015 the company reduced workforce across the globe, “no regional engineering center closures are planned.”
“While client investment decisions continue to be postponed, the company has taken a view that a recovery is unlikely before 2018. Nevertheless, the Company will maintain an engineering overcapacity to position itself for a future market upturn,” SBM Offshore said.
Should the industry downturn persist additional steps will be considered to manage the company’s cost base, SBM Offshore added.
Offshore Energy Today Staff