EnerMech has confirmed plans to make 90 further job losses from its North Sea operations.
The move comes just months after the company confirmed it had cut 360 positions from its operations in the UK and Norwegian Sea.
At the time, the firm also lowered its salaries by 6% across the board in the UK, and in other regions.
EnerMech chief executive officer, Doug Duguid, said his objective was to ‘right-size’ the company in a market where oil, gas and LNG prices would remain lower for the foreseeable future.
The reorganisation will bring together EnerMech’s UK and Norwegian divisions under a single management structure and will consolidate the management of its business lines in the region to reflect the decline in market conditions.
In addition to a loss of an estimated 90 jobs in the UK and Norway, the company has announced a number of cost cutting measures which include a reduction in salaries and benefits and the removal of a number of ex-pat positions in international locations.
Mr Duguid said: “The oil and gas industry is facing up to the fact that it needs to recalibrate its approach on how it does business and we at EnerMech are reacting to a market in which I believe prices will remain lower for some time to come, and a new reality that low oil, gas and LNG prices, are here to stay.
“The industry is demanding greater collaboration and these changes form part of our long-term strategy to offer more integrated services and an alternative contracting model we believe is more suited to the changed market in which we operate. In reality, and regretfully, this means 90 posts in the UK and Norway will be lost, many of which will be at management level.”
“By creating a flatter, leaner structure across our group, we are right-sizing the business and we believe this will make it easier to provide the integrated offering demanded by our clients. There are also a number of services that we offer internationally but do not currently provide in the UK, and we will look to add those in order to offer a completely integrated approach in the North Sea.
“While our operations in the UK and Norway have faced tough challenges, we are continuing to grow our global business with particular bright spots including the Caspian, Australia and Africa. The changes to our European business are both prudent and necessary to ensure EnerMech remains sustainable in the long-term, while giving confidence to clients that we are aligned and responsive to their requirements.”
In January this year, bosses at the company said they expected recovery in the oil and gas industry to take hold in the latter part of 2017 at the earliest.
The Aberdeen-based company, which posted a 27% rise in turnover across its global operations in 2014, said its 2015 revenues were “in line” with its most recent annual accounts published at Companies House after a delay.
Recommended for you
