Aker Solutions, a Norwegian oil services company, will be reducing the salaries for its senior management and other staff in the Norwegian maintenance, modifications and operations (MMO) business.
The company called these measure “tough but necessary” in order to raise competitiveness and win more work for its Norwegian MMO business.
According to the company, these measures comprise of temporary reductions in salaries for Norwegian MMO employees. Starting in March, senior management will see their pay lowered by 10 percent while the remainder of the staff will see reductions of 5 percent. The adjustments will be reviewed after 12 months.
“We are leaving no stone unturned in our efforts to secure a sustainable future for our business,” said Per Harald Kongelf, head of Aker Solutions Norwegian operations. “Reducing salary costs is one of multiple measures needed to safeguard our competitiveness and reinforce our ability to win more work in a market with unprecedented challenges.”
The Norwegian MMO business is being streamlined and staffing is being reduced across Norway amid very tough market conditions. As previously announced, as many as 900 positions may need to be removed unless more MMO work can be secured offshore Norway.
“These are necessary adjustments to stay competitive and secure jobs in a challenging market,” said Knut Sandvik, head of MMO. “The measures are supported by labor unions.”