Archer to Cut up to 750 Jobs
Posted 08/05/2020 08:10
Drilling contractor Archer has confirmed it is to cut between 600 and 750 jobs globally as a result of the oil price crash and Covid-19 pandemic.
The business which has a regional base near Aberdeen has already made more than 200 redundancies in the UK.
As of December 2019, Archer employed 5,000 people globally, meaning up to 15% of their workforce are expected to be cut as a result of “current client activity plans”.
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The firm said it has made £32.2m in cost savings for the eastern hemisphere including termination of 300 employees and consultants and 160 temporarily laid off.
Chief executive Dag Skindlo said: “Offshore operators have announced 20-30% investment cut for 2020, which gives an immediate impact on Archer activity across our global divisions.
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“Furthermore, the lockdown in Argentina has resulted in a situation where approximately 75% of our employees are in their homes with reduced compensation. In order to mitigate the impact of the reduced activity, we have effectuated a series of cost reduction initiatives including reduction in our work force and postponement of investments.”
The firm expects 2020 annual revenue to drop by 20-25% compared to 2019.