The company said on Tuesday that, as part of its cost efficiency measures reported in connection with the company’s 1Q 2016 report, Prosafe is implementing a reorganization of the group’s shore-based business resulting in a leaner organisation, a smaller and partly changed group management team and a rationalisation program across its workforce.

As part of this change, Robin Laird, current deputy Chief Executive Officer (CEO), will assume the position as acting Chief Financial Officer (CFO), while Stig H. Christiansen continues as acting CEO.

The company added that the board will, in due course, start a recruitment process for a new permanent CEO.

Prosafe noted that the proposed workforce rationalization is ongoing and will occur gradually throughout the remainder of 2016. The rationalization program includes a substantial head-count reduction across the group.

The company stated that the group’s target is to reduce annual costs by at least $30 to 40 million. This should start to show effect from 3Q and gradually throughout the second half of 2016 as the rationalization program takes effect and capacity is adjusted to a falling activity level, the company said.

In addition, the target is also to reduce capex spend noticeably in the near and medium term to protect the financial position.