The France-based offshore service giant that is Technip has made an announcement that it is going to undertake a significant restructuring and cost reduction plan which will lead to 6,000 men of its current workforce being cut.
The company is to make this move in order to increase cost reduction levels due to expectations pointing towards an even more troublesome industry situation, and has commented that the plan will produce savings of roughly €830m ($913.4).
Photo: Hannes van Rijn
Along with staff reduction, Technip is going to also reduce its current presence in some particular markets where profitable business is unlikely at the moment, including selected European, Asian and Latin American countries. The company has commented, however, that despite the reductions it is going to further invest in major geographic and technology areas.
When regarding its subsea division, the company is going to emphasize on cost reductions regarding markets where rates are under a large deal of pressure, and also plans on reducing its current fleet of 36 vessels down to 23 ships.
“The oil and gas industry slowdown is quite prolonged and troublesome. Thus we have made the decision to accelerate the cost reduction and efficiency procedures we have planned, which I am fully aware are going to come along with unpleasant consequences for a large deal of the Group’s employees,” said Thierry Pilenko, Technip chairman and CEO.