The Netherlands-headquartered Fugro has announced a reduction of 300 jobs and the withdrawal of its financial guidance for 2025 as a wide range of projects has been affected by postponements due to market uncertainties, mainly seen in oil and gas.
Fugro reported on September 22 that although the second half of 2025 is still expected to show a notable improvement compared to the first half, the previously anticipated 20% revenue growth is no longer realistic as a wide range of projects has been affected with significant changes in market conditions in recent weeks, with most experiencing postponements into 2026 and some being descoped, resulting in an estimated revenue impact of around €100 million.
To safeguard profitability and cash flow, the Dutch company said it was further reducing costs and maintaining strong capital discipline and is, in addition to the ongoing implementation of the current cost reduction program with annualized cost savings of €80–100 million, implementing an additional reduction of 300 full-time equivalent (FTE) , on top of the earlier communicated 750 FTE, as well as optimizing the fleet and its operations , including warm stacking several geophysical vessels during the upcoming winter season.
“Recent developments in offshore wind have further softened market sentiment, making the business environment even more challenging. The most significant impacts, however, are seen in the oil and gas market. While our activity levels are expected to increase, the timing of projects is currently affected by intensified disciplined cash and cost management in response to lower commodity prices,” Fugro said.
The impact is visible in all regions, particularly in early-stage site characterization work, even on ongoing work on recently awarded projects, and most notably in the Europe-Africa region .
The measures will start taking effect in late 2025, with their full impact expected to be realized in 2026. In addition, to protect free cash flow, the company will significantly reduce capital expenditure for 2026. For the remainder of 2025, the potential for reductions is limited due to already committed investments.
Fugro plans to provide a further update at its scheduled Q3 trading update on October 31.