Oil engineering and consulting company Wood Group plans to cut hundreds of jobs, an insider told Sky News. The source said that around 200 jobs are at risk as part of new money-saving measures as the company prepares to release its full year results on 26 March.
While the cuts comprise only a small percentage of the company’s 36,000 employees, they could have a significant impact on Wood’s UK workforce of around 6,500 people, most of whom are located in Aberdeen. It is currently unknown if the cuts will target the UK-based team or other countries; however, the company cut 34 UK-based jobs last month, with 22 roles axed at the Aberdeen office.
Wood has faced significant financial difficulties in recent months, with shares falling by a quarter over the past year. In May last year, talks between Wood Group and US private equity firm Apollo Global fell through, leading Apollo to drop a £1.7bn ($1.36bn) takeover offer. At the time, Apollo made an offer of 240p per share. Wood’s shares are now trading significantly lower than this at 151.80p.
Regardless, Wood Group CEO Ken Gilmartin remains optimistic. Commenting at the release of preliminary 2023 trading results in January, he said: “We are confident that our actions, business model and strategy are delivering and look forward to giving a further update in March.”
More positive news may be on the horizon, as Wood’s joint venture, Massey Wood, recently secured a five-year framework agreement with Shell Trinidad and Tobago for the delivery of engineering projects and asset support in Trinidad and Tobago.
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Commenting on the announcement, Shawn Combden, Wood’s president of operations, Americas, said: “This award is built on our long-standing relationship with Shell where we have a reputation for delivering high-quality projects with an excellent safety record. This win provides significant opportunities for our local teams to continue their commitment to deliver the future of energy through process and operational improvements as we move closer to net zero.”
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