Bristow plans to increase its cost saving measures from $95million to $150million as it looks to streamline its business further.
The move comes after the company previously announced it had entered a consultation period with staff members over a potential reduction to its headcount.
Bristow said the plans could result in further changes to its structure, as it looks to focus more on government contracts as it attempts to diversify away from the oil and gas industry during the decline in price.
The savings are expected to have an impact on the company’s corporate office and regions, as well as its headcount.
Further details of “organisational changes” are expected to follow over the course of the next month.
In a letter from the firm’s chief executive Jonathan Baliff staff were told the summer period of this year, particularly the last month, had been difficult for the company.
Baliff said the competitive landscape had “continued to deteriorate” for both Bristow and a number of its clients.
Baliff said: “The SMT (Senior Management Team) has determined that we must take immediate action to stay ahead of this downturn to maintain our financial health and increase our competitiveness.
“We are increasing our FY16 cost savings target from $95 million to $150 million. This is more than what we had announced earlier this year, but our sense of urgency is driven by our clients’ weakened outlook and the need to get ahead of further market declines.
“As of August 31, 2015, we have reached $60 million in cost savings and will achieve the remaining $90 million by March 31, 2016.”
The chief executive said the restructuring would make Bristow a leaner organisation which would be better positioned to compete and win business.
He added: “We came into this downturn more financially stable than our competitors, and it will be critical that we maintain this stability through cost discipline.
“I want to assure you that every decision to cut costs was carefully weighed to ensure we’re not jeopardizing our future.
“We will continue to invest in building our core infrastructure to support excellent client service and safety leadership through the Operations Transformation and our ongoing implementation of SAP and eFlight.
“These investments will better position us for the future, and I’ll explain why.
“Before this downturn, we were already broadening our business to diversify beyond offshore oil and gas transportation services through UK SAR. Going forward, we’ll also look to provide further government services.
“The need to diversify has become more evident, as we see our company adversely impacted by the current oil and gas market volatility. Bristow has too clear a mission, too unique a culture, and too much commercial potential to allow market circumstances to completely govern our future.
“We must invest in that future in this downturn.
“We also must develop our leadership for the future, so will continue to invest in our talent through the continuation of the management and leadership development programs. And at a local level, we will serve our communities through employee volunteerism as is appropriate for this downturn.
“These are difficult times for all of us, and it’s important that we not lose sight of what has made Bristow a respected and admired industry leader. We are clear on who we are, and what we stand for.”
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