Yet another oil service company has warned this week of hundreds of pending job cuts. FMC Technologies announced that more than 700 employees will be receiving lay-off notices before the summer holidays begin.
“We are in the same situation as all other companies affected by the market situation and level of activity,” Rune Thoresen, chief executive of FMC Kongsberg Subsea AS, told Norwegian Broadcasting (NRK). The sharp fall in oil prices, which continue to hover at less than half their level of just a year ago, has dramatically reduced investment by oil companies.
FMC held an extraordinary board meeting on Tuesday and informed employees of the pending job cuts shortly thereafter. “We have to adjust our labour capacity to the market situation,” Thoresen told NRK. “Today’s staffing levels are based on a much higher volume of work than our current prognoses show.”
Around 35,000 jobs in the oil and offshore industry have disappeared over the past two years. Oil service companies Aibel and National Oilwell Varco both announced more job cuts as well earlier this week.