SBM Offshore, world’s largest supplier of FPSO units, will lay off around 600 contractor workers as well as 600 of its permanent staff. The worldwide layoffs will occur over the period of 2014 and 2015.
The Dutch company has cited market conditions and the need for it to optimize the cost base as the main reason for these steps. It said that the lay offs will vary by country, based on local requirements.
SBM Offshore expects that workforce reduction will enable it to generate savings of $40 million per year.
Bruno Chabas, CEO of SBM Offshore, commented: “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.”
Also, SBM Offshore has informed it will relocate its corporate headquarters to Amsterdam. This is expected to happen in the third quarter next year. The office will employ around 100 people.