Energy services firm Wood Group cuts jobs on oil price slide

18th August 2015, Comments 0 comments

Britain energy services company Wood Group said Tuesday it had cut its headcount by 13 percent since the end of last year amid an oil-price collapse.

The action, equivalent to an employee reduction of about 5,000, mirrors plans by several oil services groups and explorers as crude prices have tumbled by more than half in value over the past year.

"Group headcount is down 13 percent from the position in December and 17 percent from June 2014," Wood Group said in a statement.

"Conditions in oil and gas markets remain very challenging and we are witnessing a sustained period of low oil prices in 2015 following the increase in focus by operators on efficiency in 2014," it added in an earnings statement.

Wood Group, heavily present in the North Sea and the Americas, added that its net profit fell 17 percent to $116.8 million (106 million euros) in the six months to the end of June compared with the first half of 2014.

Revenue was down 19 percent at $3.07 billion over the same period.

Last month energy services group Saipem -- a subsidiary of Italian oil giant Eni -- said it was axing 8,800 positions over three years.

Royal Dutch Shell meanwhile plans to reduce its headcount by 6,500 this year and Britain's biggest domestic energy provider Centrica said it would reduce its workforce by a net 4,000 positions.


© 2015 AFP

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