Danish rig operator Maersk Drilling has announced layoffs at its onshore offices, both at headquarters in Denmark and offices globally.
The latest news comes in wake of current market conditions as a result of the coronavirus (Covid-19) pandemic and oil price crash.
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According to the rig operator, the move will lead to a total reduction of 150-170 onshore workforce worldwide.
The firm has re-assessed the commercial and operational assumptions underlying the financial forecasts for 2020 and revised its guidance for 2020 for EBITDA before special items to $250 to $300m. Earlier, the guidance was in the range of $325 to $375m.
The guidance for capital expenditures for this year has been revised to around $150m; earlier, the guidance was in the range of $150 to $200m.
Maersk Drilling CEO Jorn Madsen said: “With the outbreak of Covid-19 and the lower oil prices we are facing an unprecedented reality with significant implications for our business.
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By GlobalData“Our ambition is to remain a leading company in our industry, and in order to safeguard that position we need to adapt our cost structure to the current business environment.
“This means that we need to take steps to reduce the workforce, which is unfortunate, not least in the light of the great efforts by our competent and dedicated employees, also over the past critical months.”
The company noted that it is taking necessary steps to initiate consultations with employee representatives and local trade unions as part of reorganising the onshore structure.
In order to adapt to the new business environment, the drilling rig operator has taken precautionary measures that include stacking of certain rigs and revisions to planned maintenance programmes.
