Aker Solutions said Thursday that it will temporarily cut salaries for maintenance, modifications and operations (MMO) staff in Norway in response to “very tough market conditions.”
The company said the temporary reductions call for senior management to have their pay cut by 10 percent with other staff members will have their pay trimmed by 5 percent.
The pay cuts will begin in March and will be reviewed after 12 months.
“We are leaving no stone unturned in our efforts to secure a sustainable future for our business.Reducing salary costs is one of multiple measures needed to safeguard our competitiveness and reinforce our ability to win more work in a market with unprecedented challenges,” head of Aker Solutions Norwegian operations Per Harald Kongelf said.
Aker warned in January that as as many as 900 positions may need to be eliminated unless more MMO work can be secured in offshore Norway.
The company said last month that it had begun a process to implement about half of those reductions and added that remaining adjustments will depend on work levels throughout the year.
Since oil prices began falling in July 2014, Aker has reduced its Norwegian MMO headcount by about 1,300 permanent and temporary positions.
Shrinking workloads also prompted Aker to temporarily shutdown its prefabrication workshop in Sandnessjøen for three years and close down MMO operations in Tromsø last month.
“These are necessary adjustments to stay competitive and secure jobs in a challenging market. The measures are supported by labor unions,” Aker’s head of MMO Knut Sandvik said on Thursday.