Luxembourg-based Subsea 7 said Monday it will cut 2,500 jobs and trim 11 vessels from its fleet citing “difficult” business conditions in the energy sector.
The services company will eliminate 2,500 jobs by early 2016, down substantially from the 13,000 job cuts reported at the end of 2014.
The company said it has already started employee consultation processes in Norway and the UK.
Subsea 7 will also trim 11 vessels from its global fleet by not renewing some charter vessels and either disposing or stacking vessels the company owns.
The company did not disclose how many charters it will allow to expire or how many of its own vessels will be scrapped.
The fleet reduction plan will be phased in over the next 12 months, the company said.
At the end of 2014, the fleet consisted of 39 vessels with another five under construction.
“This will enable us to emerge stronger once the downturn ends. Reducing employment is not a decision we take lightly but one that is necessary in today’s difficult oil and gas environment,” CEO Jean Cahuzac said.
Subsea 7 booked $1.18 billion in first quarter revenue, down from $1.66 billion during the same period last year, and saw its net income jump to $176 million in the first quarter from $160 million last year.