Maersk Oil announced Monday that it will cut its global workforce by 10-12 percent, as a response to the continued low oil price.
The move, which is part of the company’s drive to reduce operating costs by 20 percent by the end of 2016, follows an extensive internal review of Maersk’s business activities. The cuts will see a reduction in the number of employee and contractor roles in a range of Maersk Oil business locations, including the company’s headquarters, and brings the total number of positions taken out of the organization during 2015 to approximately 1,250.
Maersk Oil CEO Jakob Thomasen commented in a company statement:
“These are difficult decisions for any business and my immediate concern is for the welfare of those affected directly by today’s news.
“We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015, and ensure we focus where we can see adequate returns from our most robust projects. This approach has seen us sanction mega-projects like Johan Sverdrup and Culzean during the year. We remain focused on longer term growth opportunities, which play to our technical strengths, and the continued safety of all our people and assets.
“We expect the pressure to continue into 2016 and we must remain cost-focused to grow in this market. I commend our people for the improvements in our operating performance whilst we have been managing down costs across the organization.”
Business units in Qatar and Norway will implement reductions in the range of 10-12 percent, with slightly lower levels expected in Danish operations, Kazakhstan and the company’s Copenhagen headquarters. In the UK, the business has already outlined plans to reduce headcount by around 220 positions and last month it was announced that 60 roles in Angola and the United States would be cut.