Engineering firm Subsea 7 to cut up to 430 UK jobs

Offshore oil and gas firm Subsea 7 has announced it is to cut up to 430 UK jobs, most of them in Aberdeen.

The global subsea engineering company said the move was in response to "continued difficult business and economic conditions" in the oil and gas market.

It plans to axe 1,200 roles worldwide, out of a total workforce of 9,200.

The company said it was cutting more than 拢200m from its costs, and taking some ships out of its fleet.

It has begun consultation about redundancies with staff in the UK and Norway.

Subsea 7 said it remained "fully committed to preserving the critical skills, expertise and assets it requires to realise greater project value for its North Sea clients".

A year ago, the company shed up to 410 UK jobs as part of a cost reduction programme.

'Regrettable'

Phil Simons, vice president for UK and Canada, said: "Today's difficult decision is a regrettable consequence of the prolonged and challenging environment the oil and gas supply chain is now experiencing, particularly in the north-east of Scotland.

"Unfortunately, the rapid decline in project awards, increased cost pressures and market unpredictability, necessitates further streamlining of our structure and processes to protect our business and the skilled services we provide.

"I understand the dramatic impact these changes will have on our workforce and their families.

"I wish to reassure them that we will do all we can to support them through this process, to ensure they are treated with respect, compassion and sensitivity during this difficult time.

"Every effort will be made to limit the number of compulsory redundancies."

'Hugely disappointing'

Neil Gordon, chief executive of industry body Subsea UK, said: "While hugely disappointing and devastating for those affected, these redundancies don't come as a surprise.

"Our recent survey revealed that most subsea companies have seen a fall in revenues as a result of project delays or cancellations.

"There is no doubt there will be further job losses in subsea this year as the impact trickles down the supply chain."