UK-based Subsea 7 will lay off 100 to 150 employees as project delays and cost cuts by Norway’s Statoil hit the company’s orderbook.
Subsea 7 told workers about the planned redundancies earlier this week, Upstream said.
The company has not announced the business areas that will be affected by the layoffs.
Subsea 7 is a subsea engineering, construction and services company.
“We have seen further delays over the last few months to projects that are being planned. This is an extension of a trend we are seeing in the Norwegian market,” a Subsea 7 spokesman told Norwegian state TV channel NRK.
Norway’s Statoil has been slowing down on investments and expenditures as high operating costs impact its profit margins.
Statoil delayed field development plans and will continue to postpone capital expenditure into 2015.
The Norwegian Petroleum Directorate expected Statoil to file 13 field development plans this year but no plans have been filed yet.
The Subsea 7 announcement follows other layoff announcements by multiple Statoil contractors including Germany-based engineering company Bilfinger, Norway-based services companies Aker Solutions and Aibel and Norway-based engineering company Apply Sorco.
About 2,400 employees are expected to be laid off as contractors are hit by Statoil’s maintenance and modification cutbacks.