Baker Hughes has denied that the downsizing of the firm’s Norway arm is related to the proposed merger with GE Oil and Gas.
The American headquartered firm has offered severance packages to around 1,000 staff in the Scandinavian country.
But in a statement the company said the headcount reduction was not directly related to the merger due to be ratified this summer.
If approved the deal between Baker and GE will see the creation of a $32billion oilfield services giant which can compete with the like of fellow Goliath sized service provider Schlumberger.
A Baker Hughes spokeswoman said: “The offshore oil and gas industry, including Baker Hughes, continues to face difficult market conditions globally and in Norway.
“To meet the challenges of today while positioning it for growth in the future, the company is adjusting its business to improve efficiencies and reduce its cost structure.
“Baker Hughes has implemented a range of actions to reduce costs, including a voluntary severance program in which employees can apply for an enhanced severance package.
“The company believes this is the most proactive and fair mechanism to optimize its workforce in these market conditions.
She added: “The actions outlined above were taken in the ordinary course of business and are unrelated to the proposed combination of Baker Hughes with GE’s Oil and Gas business.
“Baker Hughes and GE Oil and Gas remain two separate companies and will continue to operate independently until the transaction closes, which is expected to happen in mid-2017.”
Baker Hughes had previously been lined up for a merger with oilfield service firm Halliburton, only for the deal to be scrapped at the eleventh hour.
The two companies said they had pulled the plug due to poor market conditions and “challenges” getting the transaction past regulators.
GE then swooped to take advantage. It will own 62.5% of the “new” Baker Hughes and will contribute $7.4billion to fund a $17.50 per share special dividend to existing Baker Hughes shareholders.
Baker Hughes shareholders will own 37.5% of the new company, which will have dual headquarters in Houston and London.
The US companies said the merger would create the second largest player in the oilfield equipment and services industry, with operations in more than 120 countries.
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