Subsea 7 wields axe. 2.500 workers set to lose job

Subsea 7 S.A., a provider of offshore construction and support vessels to the oil and gas industry, is looking to lay off workers and reduce fleet in response to the challenging business environment for the oil and gas supply chain sector.

In a statement issued today, the company said that due to declining workload it will lay off 2,500 workers by early 2016. The company had 13.000 workers at the end of 2014.

Subsea 7 also said that its global vessels fleet will be reduced by up to 11 vessels, based on a mixture of non-renewal of charter vessels and either disposal or stacking of owned vessels. The reshaping of the fleet will be phased over the coming 12 months

At the end of 2014, the fleet consisted of 39 vessels with a further five under construction.

Jean Cahuzac, Chief Executive Officer, said: “These cost reduction plans will allow us not only to adapt to present market challenges but also to maintain our competitiveness and the long-term viability of our business. This will enable us to emerge stronger once the downturn ends. Reducing employment is not a decision we take lightly but one that is necessary in today’s difficult oil and gas environment.”

“Deepwater oil and gas production remains a significant market with long-term growth potential. While implementing the restructuring of our organisation, we remain committed to preserving our core capabilities and investing in key enabling technologies to deliver cost-effective solutions to our clients through all stages of the oil price cycle.”

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