The rash of oil and gas sector redundancies in the north-east of Scotland shows no sign of abating after US energy giant Axon confirmed it was laying off about 25 of its staff.
A slump in oil prices caused by a supply glut has left firms scrambling to cut costs by delaying major projects and reducing their head counts.
Axon has now followed the lead of KCA Deutag, BP and Talisman Sinopec by announcing North Sea job losses.
The company made eight employees redundant earlier this month in an attempt to rebalance its budget, and it was hoped that the move would allow the rest of its workforce to be retained.
But Axon, which makes pumping systems for the offshore oil industry, among other things, has now informed about 20 more of its 70 Arbroath-based staff they will lose their jobs.
In response to a request for confirmation that 25 to 30 jobs would be cut, human resources manager Nicola Peal, yesterday said: “I can confirm that we are in a consultation period for a potential redundancy situation.
“During this period we are working hard to minimise any potential job losses.”
Axon’s managing director for Europe and Middle East, Jim Yeats, subsequently issued a statement dispelling any lingering doubts about the scale of the job losses.
He said: “As a company specialising in the design and manufacturing of specialised oil and gas industry equipment, Axon Well
Intervention Products is faced with the direct negative impact of project cancellations and cuts in capital expenditure by the industries operating and service companies.
“Therefore we have to align our cost structure to match the market conditions, this includes rationalising our manufacturing operation within one facility in Arbroath, and a reduction of the workforce from 70 to approximately 45 personnel.
“This is a very difficult time for everyone and we are dealing with this as sensitively as possible and in full consultation of the employees.”
Despite a rebound in the price of crude to about $60 a barrel from less than $50 earlier this year, more job losses could be in the offing.
Earlier this week, employees at Halliburton’s factory in the Angus town discovered they could soon be out of work. Jobs are also believed to be at risk at Oceaneering’s Aberdeen base.
An Oceaneering employee, who wished to remain anonymous, said that as many as 25 people are being considered for “redeployment,” and that CV writing and job hunting workshops are now being offered to staff.
Jack Jurkoshek, a spokesman for the Houston-based subsea engineering firm, refused to comment on the possibility of job losses occurring when contacted.
