Denmark-based Maersk Oil is to slash 10%-12% of its global workforce amid a slump in oil prices.

The company’s latest move comes soon after an extensive internal review of business activities, and will bring the total number of positions lost during 2015 to about 1,250.

Maersk Oil said the reduction proposal is part of its drive to reduce operating costs by 20% by the end of 2016.

The decision will see a reduction in the number of employee and contractor roles in the company’s various business locations in addition to its headquarters.

Maersk Oil CEO Jakob Thomasen said: "These are difficult decisions for any business and my immediate concern is for the welfare of those affected directly by today’s news.

"We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015, and ensure we focus where we can see adequate returns from our most robust projects.

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"We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015.

"This approach has seen us sanction mega-projects like Johan Sverdrup and Culzean during the year."

Maersk Oil expects that the pressure of low oil prices will continue throughout 2016.

The company is also downsizing its business in Kazakhstan, Qatar and Norway, with lower levels in the Danish operations, as well as at its Copenhagen headquarters.

In the UK, the business has already outlined plans to cut around 220 positions, with these jobs linked to the closure of the Janice asset as well as and changes to the offshore rotation.

Janice produces around 7,000 barrels per day (bpd) from three North Sea oilfields.

Image: The Tyra Field operated by Maersk Oil. Photo: courtesy of tom jervis.