UK-based offshore oil and gas firm Subsea 7 is planning cut its global workforce from 9,200 to 8,000 due to challenging market conditions.

In May last year, the company announced to it was cutting 2,500 jobs in the global workforce by early this year, down from 13,000 reported at the end of 2014.

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The latest move is a second phase of global resizing and cost reduction measures of the company.

The company will consult with employees and representatives on a local basis. The processes have already started in Norway and the UK.

As part of the cost reduction methods, up to five of Subsea 7 vessels are scheduled to leave the current active fleet by early next year.

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"The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle."

Along with those already initiated since the start of the year, the cost reduction and resizing measures are expected to deliver about $350m in cost savings per annum.

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The charge related to the resizing is expected to be less than $100m.

The company will also change the structure of its organisation with effect from 1 July this year, and the new organisational and reporting segments will consist of Surf and Conventional, i-Tech Services and Corporate.

Subsea 7 CEO Jean Cahuzac said: "Our new organisational structure reflects our focus on commercial and long-term strategic priorities as we adapt to the present low levels of activity and drive more efficient ways of working with our clients.

"The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle.

"We remain confident in the long-term future for deepwater oil and gas production."