French oil services giant Technip has held a meeting with its Aberdeen staff over a third round of job losses from the company, which could see up to 130 job cuts.
The company confirmed the redundancies would be made from its UK North Sea Subsea delivery business.
It’s understood all staff were called to a ‘town hall’ style meeting at the Hilton Treetops yesterday.
A spokeswoman for Technip said: “In response to the ongoing challenging conditions being experienced by the UK oil and gas industry, Technip UK Limited is proposing redunancies for its UK subsea delivery business.
“As a result the company will enter into a period of collective consultation with its workforce.
“Redundancies are being proposed to reflect the significantly reduced activity levels being experience across wider rindustry which are subsequently impacting the local subsea sector.”
The 130 job losses will be out of 600 staff currently working within the business unit.
Technip said the consultation period with staff is expected to last around 45 days.
Earlier this month Technip said the “expectation of a low oil price for longer continues to persist”, according to a strategic report in its latest set of accounts posted at Companies House.
The report, which was dated just a few weeks ago at 2 September, said the firm has “seen, and expects to see, additional delays on new projects” as its clients cut their budgets.
In May, Technip and US rival FMC Technologies struck a £9billion “mega-merger” which the firms said is expected to deliver savings of more than £400million. Technip UK said in the accounts it did “not anticipate that this proposed transaction will have a significant effect” on its UK business.
In July last year, the Paris-based group launched plans to cut 6,000 jobs from its global workforce.
The UK firm it had to make some “difficult decisions” last year and its workforce – contractors and staff – was reduced. According to the accounts, employed staff number remained broadly flat at 1,022 at the end of the year compared to 1,012 in 2014. The company was thought to have employed 1,200 at its peak.
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