Job Cuts Coming to Maersk Oil
Due to continued low oil prices, Maersk Oil has recently announced that it has decided to implement a 10 to 12 percent reduction in its workforce across the entire business. Following this, the total number of workers laid off by company this year will approximately total to 1,250.Advertisement
Maersk Oil Chief Executive Officer Jakob Thomasen said that doing business in a “materially changed oil price environment” means having to reduce the company’s activity levels through 2015.
In regard to this, Thomasen says the company has sanctioned some of its mega projects this year. This includes increasing the company’s share in the Norwegian Johan Sverdrup field and becoming an expert at extracting hydrocarbons from the high-pressure, high-temperature Culzean gas field. Nonetheless, Maersk believes it will still be operating in a low price oil environment by next year and so, it is necessary for them to say “cost-focused.”
According to Maersk, the 10 to 12 percent range of job cuts shall be implemented in the company’s business units in both Qatar and Norway. Meanwhile, less jobs will be reduced in Kazakhstan as well as across its Danish operation and in the company’s headquarters in Copenhagen.
At the same time, the company says that it has also already made plans to reduce its workforce in the UK by as much as 220 position. On the other hand, Maersk had also announced last month that they will eliminate 60 roles in Angola and the United States due to delays in its Chissonga project.
In its second quarter interim report, it was revealed that the Maersk Group only managed to achieve a “satisfactory profit” of $1.1 billion due to the lower oil price and lower average container freight rates. In 2014, profit for the same period was at $2.3 billion.