Aberdeen firm Absoft has axed 22 jobs in a restructuring of the business to focus on oil and gas industry work.
The software consultancy said it “did not take lightly” the decision but opportunities in other markets had not matched expectations. Growth in energy-related work prompted the refocus on its main income stream, which Absoft said continued to see rising demand.
Managing director Ian Mechie added: “I want to thank every one of our colleagues for their commitment to the company and assure them that we regret the need for the 22 redundancies.
“We had an ambition to diversify into other markets, particularly the public and manufacturing sectors, but an expected upturn in opportunities in those areas has not materialised.
“A significant reduction in the volume of work available in those new markets has affected our ability to maintain some posts. “What was absolutely clear to us was that we could secure the majority of positions by focusing on the energy sector, which has been our core specialism for more than 20 years.”
Mr Mechie said the firm and its 107-strong workforce would continue to work in other areas whenever opportunities arose. This will be provided through a new support services division, and the company aims to become a SAP business software “centre of excellence” for the oil and gas industry.
SAP systems are used to control and manage all aspects of the offshore asset and project lifecycle. Absoft, founded in 1991, works with major operators and service companies, primarily operating in the North Sea and elsewhere in Europe, from its Aberdeen headquarters and bases in London and Stavanger, Norway.
It provides consultants who work in-house with clients, as well as providing remote support to businesses.
Management changes as part its restructuring see business operations leader Don Valentine take on the role of operations director, while former consultant Eric McAdam is now professional services director.
Keith Davidson, who joined Absoft in 2010, steps up as director of the new support services division and Debbie Mackenzie will focus on key client relationships in the new position of strategic account director.
Mr Mechie said: “We know where our key strengths lie – delivering significant efficiency and cost control improvements through SAP systems to operators and major service companies in oil and gas.
“We have developed the most in-depth expertise available when it comes to helping companies achieve safe and compliant operations in the most regulated environments globally.
“Three years ago we made a conscious effort to diversify and while we enjoyed success in our expanded work in manufacturing, higher and further education, market conditions meant our ambitious growth targets in those areas could not be realised.
“Throughout the intervening period, we have seen continuous growth in oil and gas, and it is that demand which has driven our decision to refocus on our natural area of expertise.”
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