SBM Offshore has announced that it is in the process of releasing approximately 600 contractor staff and 600 permanent staff worldwide over the period 2014 and 2015. The restructuring has been attributed to market conditions and SBM Offshore that it will help optimise the company’s cost base.
The workforce reduction plans will vary by country, based on local legal requirements and in close consultation with work councils and employee representatives, as appropriate.
SBM Offshore expects to generate annualised savings of approximately US$40 million relating to company employees only. Total redundancy costs of US$25 million are expected, of which US$17 million will be recorded in 2014 and a further US$8 million in 2015.
The company has also announced the relocation of its corporate headquarters to Amsterdam, the Netherlands. The move will be effective from the third quarter of 2015. Monaco will remain a strategic location for technology, engineering and operations.
Bruno Chabas, CEO of SBM Offshore, said: “Although we regret losing some of our colleagues, we believe these steps are necessary to deliver value to our stakeholders and drive profitable growth over time."
Adapted from press release by Callum O'Reilly
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