Subsea 7 has issued further details of its workforce and fleet reduction initiative announced earlier this year.
Namely, the offshore engineering firm predicts overall workforce reduction of approximately 3,000 by the end of the second quarter 2021.
Subsea 7 also said that two-thirds of the reduction would affect the non-permanent workforce.
Discussions with employee representatives will take place on a local basis and consultation will start soon, the company explained.
Furthermore, company will reduce its active fleet of 32 vessels by up to 10 vessels.
This should go through the non-renewal of chartered tonnage and the stacking of owned assets.
The reshaping of the fleet should take place over the next 12 months.
These cost reduction measures should deliver approximately $400 million in annualised cash cost savings from the second quarter 2021.
In addition, capital expenditures will be reduced to minimal levels in 2021 and 2022.
John Evans, chief executive officer 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.”