Norwegian offshore shipowner Farstad Shipping is pressing forward with cutting costs, citing challenging market situation.
The company on Wednesday said it started a process with the aim of reducing administrative expenses at the office in Aalesund. The employees have today been informed about the process, which will conclude by the end of February 2016, Farstad said. Farstad did not say how many employees would be affected.
“The current market situation is challenging. In order to strengthen the company’s competitiveness, we are working continuously to keep costs at the right level,” says Karl-Johan Bakken, CEO of Farstad Shipping.
The company has said that as part of a larger process, Farstad Shipping has since 2014 implemented a number of cost-saving measures both onshore and offshore, including closing of its branch office in Aberdeen and layoffs among seafarers.
Farstad also added that sales of older vessels are completed and seven vessels are currently laid up in the North Sea region. Further measures are expected ahead, the company added.
“By initiating these measures, we are preparing for the future. Our advanced fleet as well as a sharpened organization with much expertise will secure our position as a leading player in our industry,” Bakken says .