Aker Solutions likely to slash 6,000 jobs in Norway amid COVID-19 and low oil price crises

first_img Aker Solutions announces various measures to tackle COVID-19 and low oil price issues. (Credit: Aker Solutions) Aker Solutions revealed that it could temporarily lay off up to 6,000 employees in Norway as part of the various measures it is taking up in response to the COVID-19 situation and the declining oil prices.The company said that it submitted notice of the potential need of the layoffs in the country. It has already temporarily laid off 400 employees in Norway and 250 employees in the UK owing to the current health crisis across the world.Besides, the company has demobilised nearly 3,000 contractors in Norway, including 700 non-Nordic contractors from Egersund and Sandnessjøen, to adhere to the new national and customer restrictions.Overall, the company employs nearly 16,000 people in over 20 countries.The Norwegian engineering firm said that it is looking to mitigate the impact of the slowdown in activity level caused by the coronavirus outbreak and the increased uncertainty after the drop in commodity prices and demand for oil and gas.The company claimed that it has the organisation, resources, competence, and assets to sustain current and new activity levels launched by its clients.Aker Solutions CEO comments on the company’s measuresAker Solutions CEO Luis Araujo said: “The first months of 2020 have been unlike anything we have previously experienced. The COVID-19 pandemic, coupled with the sharp drop in demand for oil and gas, has caused significant disruption to the global economy and left societies around the world grappling with new ways of working and living.“The global energy sector has been hit particularly hard, and at Aker Solutions we are doing our utmost to mitigate the effects for employees, customers, shareholders and other stakeholders worldwide.”The company said that it will cut down its investments significantly in 2020, from the original plan of around NOK750m ($72.71m) to nearly NOK500m ($48.47m).Aker Solutions will also look to consolidate its subsea tree production to Brazil and Malaysia as part of the cost-cutting measures. As part of this, the company will no longer manufacture subsea trees at its Tranby site outside Oslo, Norway after 2020, which removes market capacity of nearly 60 subsea tree equivalents per year. Aker Solutions, in response to the disruptions caused by the COVID-19 outbreak, has already laid off 650 employees across Norway and the UKlast_img

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