Norway’s Statoil informed that in its effort to standardise, simplify and increase efficiency across the company, it has estimated the potential workforce reduction at 1,100 – 1,500 permanent employees by end 2016.
In addition, Statoil will further reduce the number of consultants by around 525. The estimate for workforce reductions reflects the STEP efficiency potential and further corporate improvements over the coming 18 months, the company said in a statement.
Anders Opedal, executive vice president and chief operating officer in Statoil, said, “simplification of work processes, clear accountability and enabling future growth opportunities guide Statoil’s continued improvement effort. Further changes and adjustments to the organisational set-up in the business areas to realise the full potential of the improvement program will be presented by the end of the month.”
The improvement programme and strict capital expenditure prioritization was initiated in 2013, addressing the industry-wide cost and competitiveness challenge, well ahead of the current downturn.
Since end 2013 the workforce has been reduced by 1340 permanent employees and 995 external consultants.
The implementation of the improvement agenda will continue in coming weeks and months. The changes and actions from STEP have been decided after consultation with the employees’ representatives, and these will be handed over to the Business Areas for implementation, the company said.
Statoil intends to deliver USD 1.7 billion in annual savings from the improvement programme in 2016, and beyond, it added.
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Image: Statoil