Offshore installation and construction firm Subsea 7 has announced plans to slash its global workforce by around 3,000 employees by the end of June 2020.

The layoffs come as part of the company’s cost reduction programme following the slump in the oil market.

This move will see the company’s global workforce of 12,000 reduced by a quarter.

According to a company statement, these cost-cutting measures will help to preserve cash and strengthen its finances through the coronavirus pandemic.

In a press statement, Subsea 7 stated: “The active fleet of 32 vessels will be reduced by up to 10 vessels through the non-renewal of chartered tonnage and the stacking of owned assets.

“It is intended that the reshaping of the fleet would take place over the next 12 months commensurate with the evolution of the group’s workload.”

Subsea 7 said these measures are expected to result in about $400m in annualised cash cost savings from the second quarter of next year.

The company operates in ∼30 countries but did not disclose where jobs would be cut, Reuters reported.

CEO John Evans said: “Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control.

“These measures to reduce our cost base will help preserve cash and protect our balance sheet strength, while maintaining our strong competitive position in core markets.”

Last month, Subsea 7 secured a contract to provide services to Chevron in the Anchor field, in the US Gulf of Mexico.

In November 2019, Subsea 7’s Life of Field business division i-Tech 7 completed an underwater inspection in lieu of dry-docking (UWILD) project.