National Oilwell Varco (NOV) is preparing to cut just over 500 positions in Norway as the services and equipment sector continues to struggle with falling oil and gas spends.
According to Reuters, the Houston-based firm will eliminate 520 permanent jobs in Norway as low oil prices impact the numbers of orders the company is receiving.
Further details about the cuts have not been disclosed yet.
The cuts will bring NOV’s Norwegian headcount down to 1,900 from 5,000 positions a year ago, the Dow Jones Newswires said.
“The uncertain market situation means that we cannot say how extensive the downsizing process will be in the long run,” NOV told Reuters.
The company said earlier this month that it anticipated a round of layoffs but had not specified how large those cuts would be.
NOV chief Clay Williams said during the company’s fourth quarter conference call that NOV’s global workforce, including contract labor, shrunk by 21 percent in 2015.
“Restructuring will continue through the first half of 2016 and perhaps longer in view of the challenging market,” Williams said.
The company has also closed 75 facilities since the middle of 2014.
Williams added that NOV is “not planning for a recovery in 2016.”
NOV’s fourth quarter 2015 revenues fell 52 percent year-over-year to $2.7 billion on an operating profit of $141 million, or 5.2 percent of sales.
Full year 2015 revenues were $14.76 billion on a net loss of $769 million, or $1.99 per fully diluted share.