Maersk Supply Services cited “unprecedented market conditions” for shedding 400 jobs and axing 20 vessels.
Company boss, Jorn Madsen, said the job losses, which will come next month, were “unfortunate”.
“We are facing unprecedented market conditions, and regrettably we have to further adjust our crew pool. It is an unfortunate, but necessary step to safeguard the future of our company,” he said.
He said the trend of supply and demand would see the OSV utilization decline in coming years.
“It is one of our prime objectives to attempt to restore the supply demand balance in the offshore supply market. This is why we are divesting up to 20 vessels from our legacy fleet over the course of the next 18 months. The vast majority of our divested vessels will be recycled or modified by their new owners to compete outside of the OSV market,” he told Splash.
The 20 vessel cut represents 33% of its fleet. The reduction will be implemented over the next 18 months.
“The divestment plan is a response to vessels in lay-up, limited trading opportunities and the global over-supply of offshore supply vessels in the industry,” the company said in a release.
The first 10 vessels will be sidelined by the end of this year.
If you are facing redundancy from the oil and gas sector and want to know what your rights are, read this article.
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