Houston-headquartered engineering firm McDermott has made nearly 1700 job cuts following a review of the company's cost structure.
The firm says 475 were cut up to March, through organizational efficiencies, which have helped save some US$27.6 million.
The firm also said, as a result of "regular work activity and the sequencing of projects," over 1200 additional positions were released from the company, primarily related to craft labor in McDermott’s fabrication yards.The firm has also started initiatives around centralization and reducing operational costs and says it is on track to achieve cash savings of around $50 million in 2015, before restructuring charges.
The moves follow a major review of the company’s cost structure, started at the beginning of 2015.
Yesterday, Subsea 7 said it was cutting its workforce by almost 20%, in view of the difficult business and economic conditions in the oil and gas market. By early 2016, the firm expects to cut 2500 jobs and, over the next 12 months, take out 11 vessels from its 39-strong global fleet.
Oilfield service companies have also had to initiate major redundancy and cost cutting programs as capital spending programs by the majors have been slashed amid the low oil price environment.
Read more:
Subsea 7 to cut work force, vessels
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