Royal IHC, a Dutch builder of vessels and equipment for the offshore oil & gas and dredging industries, has revealed it will start laying off workers due to tough market conditions.
In a statement issued yesterday, the company said that due to the rapidly deteriorating market and a drop in oil price, it was forced to make substantial cost cutting measures, increase competitiveness and ensure a stable and economically sound business in the future.
The company will cut around 1,600 jobs. It said it would slash 487 permanent positions and 1127 temporary jobs. The cuts are expected to be completed by the end of 2015.
Also, Royal IHC, formerly known as IHC Merwede, will close two of its four manufacturing facilities in the Netherlands.
In its 2014 annual report, IHC Merwede said that at the end of 2014 it had over 3,200 employees based at various locations around the world.
Offshore Energy Today Staff