Hundreds of jobs cut from oil & gas sector

by Miklos Bolza14 Mar 2016
Announcements by a number of firms in the oil & gas industry mean that hundreds of workers will lose their jobs in the near future.
 
Global floating production storage and offloading firm, BW Offshore announced it would lay off 35% of its onshore staff amidst worsening conditions.
 
“Macro conditions for the offshore industry have continued to deteriorate over the past months and BW Offshore expects reduction in industry capital expenditure to continue,” the company said in a statement.
 
The firm will cut 100 out of 300 employees working in Singapore in line with an “extensive cost reduction program”.
 
The firm hopes this right-sizing will help reduce annual costs by US$30 million
 
Modec, one of BW Offshore’s competitors, is also planning on lowering its headcount in April.
 
An anonymous source told The Business Times the retrenchment would affect workers executing floating production projects out of Singapore.
 
The right-sizing of both BW Offshore and Modec have been caused by a slump in oil prices as well as geopolitical instability in demand centres like Brazil.
 
Engineering, construction and procurement firm, Chicago Bridge & Iron is also looking to cut jobs here in Singapore, The Business Times reports. With staff numbers already slashed to less than 100, the company is now aiming to exit the country altogether.
 
These cuts come after several firms in the oil & gas sector have reduced their headcount. In January, Dolphin Geophysical reduced its staff numbers by 160 or 170 after its umbrella firm, Dolphin Group, went bankrupt in December 2015.
 
Keppel has already slashed its global headcount by 6,000 and reduced its Singapore sub-contract workforce by 7,900. Additionally, SembMarine announced future job cuts of 3,000 to 4,000 staff at the firm’s results briefing for the 2015 financial year.
 
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