LNG engineer Technip said it will cut its global workforce by about 6,000 as the company restructures its business in response to the downturn in the oil and gas market.
“ The slowdown in the oil and gas industry is prolonged and harsh. Therefore, we have decided to accelerate our cost reduction and efficiency measures – which I know will have tough consequences for employees across the Group,” Thierry Pilenko, Chairman and CEO of Technip, said.
The company’s restructuring plan targets savings of €830 million, of which €700 million to be delivered in 2016 and the balance in 2017.
A significant part of the restructuring plan covers the company’s Onshore/Offshore business.
“ Reduction (including through sales or closures) of the company’s presence in some Onshore/Offshore markets where profitable business is unlikely even in the medium-term, including selected countries in Europe, Asia and Latin America including Brazil ,” Technip said.
In parallel, Technip said it will reinforce its investment in key geographic and technology areas where for example it has first mover advantage, such as FLNG.
Technip expects Onshore/Offshore will be significantly more profitable in the second half of the year compared to the first half of 2015, with adjusted underlying operating income from recurring activities between €140 million and €160 million.
LNG World News Staff; Image: Technip