Technip Axes 6,000 Jobs

French oil services company Technip will lay off around 6,000 of its employees within its restructuring and cost reduction plan launched amid ever more challenging environment in oil and gas industry.

Through the plan the company is targeting savings of approximately €830 million (USD 914 million), of which €700 million is expected to be delivered in 2016 and the balance in 2017.

“The group will reduce its global workforce by approximately 6,000 and will pursue the streamlining of its activities started last year to focus on its core assets and activities. Employees will be informed and employee representatives consulted in due time on a local basis,” Technip said.

A significant part of the restructuring plan covers the Onshore/Offshore segment and addresses its recent unsatisfactory performance. With respect to its subsea operations, Technip said it would further reduce fleet for additional two vessels, one fully-owned and one leased, taking the fleet down to 23 vessels from 36 at the end of 2013.

 “The slowdown in the oil and gas industry is prolonged and harsh. Therefore we have decided to accelerate our cost reduction and efficiency measures – which I know will have tough consequences for employees across the Group,” said Thierry Pilenko, Technip’s Chairman and CEO.