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Image courtesy of SBM Offshore.

Netherlands-based SBM Offshore is cutting 1,200 jobs, or about 11 percent of its total workforce, as part of a broader cost saving program.

About 600 contractors and 600 permanent employees will be relieved of their posts, the company said Thursday.

The permanent employee cuts are expected to save the company about $40 million per year.

SBM currently employs 10,500 people.

The job cuts will affect all five regions the company operates in, SBM said.

The cuts coincide with the company moving its headquarters from Schiedam to Amsterdam.

“Although we regret losing some of our colleagues, we believe these steps are necessary to deliver value to our stakeholders and drive profitable growth over time,” CEO Bruno Chabas said.

The job cut plan will cost $25 million, with the company booking $17 million of the costs in 2014 and recording the remaining $8 million in 2015.

Earlier this year, SBM paid $200 million to settle claims by Dutch and U.S. regulators that company sales agents made improper payments to government officials in Angola, Brazil and Equatorial Guinea from 2007 to 2011.

The company is still under investigation in Brazil.