Subsea 7 is laying off 3,000 employees and will reduce its active fleet of 32 vessels by up to 10 vessels in response to the corona-induced oil crisis. The drastic measures are expected to deliver 400 million dollars in annual savings. 

Discussions with employee representatives will take place on a local basis and consultation will start soon, the company states. 3,000 employees will likely be laid off by the end of the second quarter of 2021. That corresponds to 25% of the company’s current workforce of 12,000 people.

Two-thirds of the reduction would affect the non-permanent workforce and one-third of the reduction would affect permanent employees, Subsea 7 writes in a statement.

The company’s active fleet of 32 vessels will be reduced by up to 10 vessels through the non-renewal of chartered tonnage and the stacking of owned assets. This process is intended to take place over the next 12 month and commensurate with the reduction of Subsea 7’s workload.

CEO John Evans said: “Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control. These measures to reduce our cost base will help preserve cash and protect our balance sheet strength while maintaining our strong competitive position in core markets.”