Oil and Gas People has learned today that Subsea 7 plans to cut 430 jobs from its UK operations.

In a statement issued this afternoon a spokeswoman for Subsea7 said:

“As part of the Company’s global resizing and cost reduction measures, Subsea 7 today, 22 June 2016, advised its staff in Aberdeen, Glasgow and London that it will be entering a formal consultation. The business will reduce its UK workforce by up to 430 by the end of Q1 2017.

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“Subsea 7 remains fully committed to preserving the critical skills, expertise and assets it requires to realise greater project value for its North Sea clients, without compromising on quality and safety.

“As the Company commenced the consultation process, Phil Simons, Vice President for UK & Canada, said: “Today’s difficult decision is a regrettable consequence of the prolonged and challenging environment the oil and gas supply chain is now experiencing, particularly in the north-east of Scotland.

“Unfortunately, the rapid decline in project awards, increased cost pressures and market unpredictability, necessitates further streamlining of our structure and processes to protect our business and the skilled services we provide.

“I understand the dramatic impact these changes will have on our workforce and their families. I wish to reassure them that we will do all we can to support them through this process, to ensure they are treated with respect, compassion and sensitivity during this difficult time. Every effort will be made to limit the number of compulsory redundancies.”

The redundancies are in addition to those announced in May of 2015.