Aker Solutions has announced plans to cut around 900 permanent positions in its maintenance, modifications and operations (MMO) unit across Norway due to challenging market conditions.
As part of its plans, the company will streamline the MMO business to one regional unit from previously four.
Go deeper with GlobalData
The positions may be impacted at facilities in Stavanger, Bergen, Kristiansund, Trondheim, Tromsø and Sandnessjøen, as well as offshore.
Aker will make the workforce reductions through regular employee turnover, reassignments to other parts of the company and redundancies.
The company will start the process to implement half the reductions with immediate effect, with the remaining adjustments made depending on work levels throughout 2016.
See Also:
It has cut around 1,300 positions since July 2014 as part of efforts to adjust to a market slowdown.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAker Solutions CEO Luis Araujo said: "These measures are painful but necessary to strengthen the competitiveness and longer term potential of our Norwegian MMO business, which has suffered from a sharp drop in activity in Norway’s offshore services market.
"Market conditions are challenging, but I am confident that the steps we are taking now to streamline operations, reduce costs and focus on our key strengths will enhance our position in MMO, also internationally, where we have been winning business and expanding in countries including Canada, the UK and Brunei."
As part of its decision, the company will temporarily close its prefabrication workshop in Sandnessjøen for about three years and also terminate MMO operations in Tromsø.
Approximately 5,000 employees of Aker Solutions are in the MMO area, with around 3,600 in Norway.
Image: As many as 900 positions may be impacted at Aker’s facilities in Stavanger, Bergen, Kristiansund, Trondheim, Tromsø and Sandnessjøen. Photo: courtesy of Aker Solutions.
