Norway-based services player Aker Solutions said Wednesday it will cut about 300 jobs in Norway as demand for drilling services drops amid low oil prices.
The cuts will most likely affect employees in the company’s maintenance, modifications and operations (MMO) division, Reuters said.
“Necessary adjustments will be made through normal employee turnover, reassignments to other parts of the company and dismissals,” Aker said.
Aker previously announced that 70 MMO employees may be temporarily laid off.
“Activity in the MMO market in Norway has dropped considerably since last summer, causing overcapacity. As we see it today, these challenges will continue through 2015 and possibly also into 2016,” head of Aker Solutions in Norway Per Harald Kongelf said.
The company currently employees 8,300 people in Norway with MMO employees accounting for 4,300 jobs.
Aker’s MMO division accounted for about 25 percent of the firm’s total fourth quarter sales.