Norwegian geoscience firm Electromagnetic Geoservices (EMGS) has announced plans to cut its headcount by a further 15%, following a 20% reduction in workforce made last year.
Actual staffing numbers were not given. EMGS said the changes were being made to reduce its cost base and increase efficiency in line with the level of expected activity in the current market, which has suffered under pro-longed low oil prices.
The changes will involve centralizing and or merging departments, in addition to other measures to reduce cost. The cost of these moves will be about US$ 0.7 million in restructuring charges but are expected to reduce annual costs by about $10 million.
"Whilst the interest in our technology continues to be high, our customers are delaying, cancelling or reducing work scopes, resulting in a lower demand for our services. Therefore, we continue to focus on cost control and cash flow, and implement changes to increase the efficiency of the organization," says Christiaan Vermeijden, CEO of EMGS.
Subscribe
