Offshore installation, construction, and decommissioning company Allseas is planning workforce cuts due to a bleak outlook for offshore projects in the wake of low oil prices and COVID-19 pandemic.
In a statement sent to Offshore Engineer, Allseas said the market situation has caused current and future projects to be deferred or canceled and has thus forced the company to reduced its workforce by "a few hundred."
"[The market situation] forces us to implement essential short-term cost-saving measures to reduce our substantial operational and personnel costs and protect the long-term future of the company," Allseas said.
"In addition to deferring small and large investment projects, including upgrades to our vessels and equipment, we must make cuts to our workforce.
"The lack of offshore projects for the coming years means there is insufficient work to keep all our vessels, and consequently all our crew, busy. Unfortunately, we will have to reduce our crew headcount by a few hundred over the course of 2020. Obviously, any decision we make will adhere to and comply with all the rules and regulations set by relevant labor laws," Allseas, the operator of a fleet of specialized heavy-lift, pipelay and support vessels, said.
According to information on the company's website, Allseas employs over 4000 people worldwide.