Dutch provider of floating production systems to the international offshore oil and gas industry, SBM Offshore, will lay off at least another 250 employees amid market downturn.
SBM Offshore said on Wednesday that, as a result of the ongoing review of the company’s cost structure due to the continued market downturn, the workforce reduction is now expected to amount to at least 650 positions worldwide over the course of 2016 as a result of the 2016 restructuring plan.
The company started its restructuring plan at the end of 2014 which, according to SBM, allowed the Turnkey segment to remain at breakeven during the first half of 2016 and to lower overheads costs by 29% during the period.
The company had planned to cut around 400 jobs this year, but increased that number to at least 650 on Wednesday. As a result of the restructuring plan, the expected annualized savings are anticipated to reach at least $70 million.
SBM also said that additional cost savings will be targeted through various means, including a 10% voluntary cut in fixed income for the next twelve months by the members of the Management Board and the Executive Committee.
In addition, the Management Board and the Executive Committee will reduce their potential 2016 short-term cash incentive by 50%.
The Dutch FPSO provider also on Wednesday announced the appointment of D.H.M. Wood as its new Chief Financial Officer (CFO). Wood has worked at Royal Dutch Shell plc since 1993 in various financial and management positions; most recently as CFO of Showa Shell Sekiyu K.K. in Japan.
Offshore Energy Today Staff