ABB Norway, a Norwegian subsidiary of the Swiss power and automation giant ABB, is set to make job cuts in Norway.

The company will make the cuts within the oil and gas part of its business. Up to 120 jobs will be affected. ABB Norway said Friday the further capacity adjustments were needed due to lower activity levels.

The company’s CEO Steffen Waal said he regretted having to convey such a gloomy message to the staff.

“Downsizing is stressful for the whole company and especially dramatic for those affected directly, but sometimes it is unfortunately necessary. We are in constructive dialogue with the trade unions and concerned to take care of the employees in the best possible way,” said Waal.

The latest capacity adjustment is in addition to the one that was announced for the entire ABB in Norway in autumn 2015, but this time only oil and gas activities will be affected.

Waal has cited sustained low oil prices and subsequent decline in investment levels as the reason for the move.

“We are experiencing the same thing as everyone else, significantly lower activity in the oil and gas industry than we are staffed. We do not foresee a significant increase in activity in the short or medium term, “says Waal.