Royal Boskalis Westminster is set to cut around 230 jobs in its Papendrecht head office, following the completion of the study into the costs of its head office organization.
In a statement on Monday, Boskalis said that the deteriorated market circumstances and the expected long spell of low energy prices were the reason for the study.
Boskalis said it would target total cost savings of EUR 30-35 million, resulting in the loss of around 230 jobs.
“This restructuring is part of the Corporate Business Plan 2017-2019 which Boskalis presented at the start of the year and will be implemented in the next 18 months,” Boskalis said.
The Dutch offshore and dredging contractor said the reason for the study was that Boskalis was impacted by the negative market developments, mainly as a result of the low oil price.
To remind, the company last year announced a fleet rationalization and cost reduction program. The program announced in 2016 called for 24 vessels to be taken out of service “in the coming two years,” of which fourteen at the Offshore Energy division, resulting in the loss of approximately 650 jobs.
A significant part of the fleet rationalization program was already implemented in 2016 and an impairment charge was taken on the offshore fleet and goodwill, the company said on Monday.
Commenting on the latest announcement, Boskalis said: “As a result of this measure around 230 employees will be made redundant at the head office in Papendrecht. The reduction will be absorbed through attrition and redeployment where possible, but compulsory redundancies cannot be ruled out. Boskalis has requested the formal opinion of the Works Council with regard to this intended decision.”
Offshore Energy Today Staff