Denmark-based offshore driller Maersk Drilling is reducing its headquarter organization by up to 70 positions of which approximately 20 are expected to be vacancies that will not be filled.
The company explained on Monday that the reduction is a response to the continued market decline and reduced activity level in the oil industry.
The driller also said that the staff reduction is expected to concern all headquarter functions of Maersk Drilling. Headquarter functions situated in other locations than Copenhagen might also be affected, the company added.
Claus V Hemmingsen , CEO of Maersk Drilling and Vice CEO of the Maersk Group said,“The combination of low activity levels and excess capacity of drilling rigs continue to drive lower utilization and lower day rates. At present, nine out of Maersk Drilling’s 23 units are lying idle, and we expect the market balance to be challenged in the coming years. As a consequence, we have had to say goodbye to more than 600 offshore employees in the last 12 months.”
Hemmingsen continued: “To date, Maersk Drilling have managed to reduce cost by more than 15%. However, the adverse market conditions continue to heavily affect us, and an onshore staff reduction is an unfortunate but necessary step to safeguard the future of our company.”