In December, SBM Offshore announced significant workforce reduction plans.
According to an official news release, “In light of market conditions and in order to optimize the Company’s cost base, capacity requirements have been reviewed with the objective of creating a productive environment for performing teams and maintaining our core competencies and technological edge. Regretfully SBM Offshore is in the process of releasing approximately 600 contractor staff and an equal number of permanent staff, totaling approximately 1,200 positions worldwide, over the period 2014 and 2015.”
The reduction plans vary depending on the country and local legal requirements, and they will be made in consultation with employee representatives and work councils, as appropriate. The company hopes the restructuring will generate yearly savings of roughly $40 million. Redundancy costs for the measure are estimated at $25 million, of which $17 million is expected to be recorded in 2014, and $8 million in 2015.
Additionally, SBM Offshore announced that it will be relocating its corporate headquarters to Amsterdam as of the third quarter of 2015. The Company sites international orientation, Euronext listing, presence of many other stakeholders in the Netherlands, and proximity to the industry and Schiphol airport as reasons for the move. The Company expects this measure to provide advantages for SBM Offshore as a global player in the maritime industry. According to the statement, 100 employees will work with the management board from the new offices in the Netherlands. Monaco will remain a strategic location for engineering, technology, and operations.
Says Bruno Chabas, CEO of SBM Offshore, “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.”
The restructuring will take place over the next full year and is expected to begin immediately.
