BW Offshore is looking at cutbacks of as much as 35% in its global onshore workforce as the Oslo-listed floating production player feels the pain of industry spending cuts amid low oil prices.
The company, led by chief executive Carl Arnet, said in a statement it was initiating the “organisational changes” to “right-size the organisation to fit the projected activity levels”.
Between 50 and 60 staff could be affected in Norway, including 35 at the Oslo headquarters, as well as personnel at other offices in Singapore and Rio de Janeiro, with a total of 170 positions to be axed, according to Upstream’s sister publication DN.no.
The downsizing effort, due to be completed in the first quarter is expected to result in an annual cost saving of around $30 million, though a provision will be booked in the first-quarter accounts, BW stated.
It follows drastic cuts in capital expenditure by oil companies that have resulted in field development projects being postponed or cancelled due to a perceived lack of profitability after a near-70% plunge in oil prices since mid-2014.
“Macro conditions for the offshore industry have continued to deteriorate over the past months and BW expects the reduction in industry capital expenditure to continue,” the statement read.
“The FPSO industry is equally affected and the the situation does not seem likely to change in the short term.”