Royal Boskalis Westminster today confirmed it would cut a 650 jobs and side-line 24 vessels.
The jobs cuts represent a nearly 10% reduction of its 8,268-strong workforce.
Chief executive Peter Berdowsk said: “After a few very busy years the market outlook for Boskalis has changed drastically as a result of continuing low energy and commodity prices. The volume of work in the market has fallen sharply and this is putting pressure on the utilization rate of our vessels.
“Because we expect these market conditions to persist in the coming years it is essential that we adapt the size and composition of our fleet to this new reality.”
The vessels will be removed from its fleet over the next two years.
The company leader added: “We are fully aware that this intended decision is drastic and that it will have a major social impact. While we will try to absorb the work force reduction through attrition and redeployment wherever possible, compulsory redundancies unfortunately look to be unavoidable.
“Where possible the workforce reduction will be absorbed through attrition and redeployment. Despite this, compulsory redundancies cannot be ruled out. Boskalis has requested the formal opinion of the Dutch Works Council and will invite the trade unions to consult on a social plan in the short term.”