A weakened Norwegian market has forced Aker Solutions to transfer hundreds of staff members and help dozens more find new employment.
The firm is using the Aker Advantage Recruitment Agency to find work for and transfer more than 200 employees affected by a decline in Norway’s offshore maintenance and modifications market.
About 100 MMO engineers have already secured a transfer to a new subsea engineering hub in Stavanger.
Øyvind Eriksen, chairman of Aker Solutions and CEO of Aker ASA, said whilst the company was doing it all it could to secure alternative work for its staff the firm could not rule out the possibility of layoffs.
“We’re doing our utmost to avoid redundancies and take care of our employees and business, though we can’t rule out layoffs if the market should worsen or we’re unable to find new jobs for all employees,” said Eriksen. “Maintaining the right balance between short-term capacity adjustments while preparing and positioning ourselves for the next wave of growth is a prerequisite for creating long-term shareholder value.”
The firm proactively started seeking alternative employment for its staff to ease overcapacity in its MMO business. The business stream was weakened by stagnating demand as firms continue to curb spending, according to the company.
“The offshore maintenance and modifications market in Norway has weakened considerably this year, causing overcapacity and weighing on earnings in the MMO segment,” said Tore Sjursen, head of MMO at Aker Solutions. ”While the industry has seen lay-offs, we’re seeking to find our employees alternative jobs within the company, the Aker group or in other firms operating on the shelf.”
One of the solutions includes a one-year framework agreement with Statoil which comes into effect in August. The deal includes work within mechanical completion and commissioning, process technology, mechanical technology, HSE technical services, electrical and automation technologies and life-cycle information management.
“The contract with Statoil offers opportunities to our employees and showcases our ability to provide mobility and access to competence in the oil and gas industry during fluctuating market conditions,” said Eriksen.
“We’re fortunate that Aker Solutions in itself is a large company with other business areas that can provide job opportunities for MMO staff.”
Employees affected by the downturn are currently based out Stavanger, Bergen, Ålesund, Kristiansund and Trondheim.
According to Aker, nearly all of the MMO employees who were offered a transfer option of moving to Aker Advantage or the new subsea hub accepted. The Aker Advantage deal included a salaries and benefits guarantee for up to seven months as staff continue to look for new roles. Employees are said to considering all of their options including moving to the UK and Canada to seek alternative employment.