Aberdeen-based engineering group Wood Group is looking to cut around 300 UK onshore staff, the firm announced today.
Wood Group says the move is "in response to continuing cost and efficiency challenges affecting the oil and gas sector and to strategically position the company to remain competitive both now and in the future." A consultation with about 1000 staff will be carried out. Wood Group employs 6200 onshore staff in the UK.
Wood Group has already made a series of contractor rates cuts, as it has looked to reduce costs following the fall in oil prices since summer 2014.
David Kemp, Wood Group’s CFO said: “We are firmly committed to supporting the long-term sustainability of the industry in the North Sea and maximising economic recovery by ensuring we are fit for purpose, flexible and strongly equipped to deliver efficiently and effectively. To achieve this, and in response to a natural reduction in workscopes, we are streamlining our structure and our processes to reduce costs and an inevitable outcome of this is an impact on our employee numbers.
“As ever, our commitment is to act compassionately and sensitively, supporting our people through this consultation process and we will make every effort to minimize the impact on them.”
Wood Group, which has about 36,000 staff globally, reduced its overall underlying head count by 8000, or 20%, in 2015, a year which saw its revenue drop 23%, to US$5.8 billion, and when oil prices were higher on average than they have been this year. Profit before tax and exceptionals was down 22.8% at $320 million.