Saipem cuts another 800 employees from European-based facilities

Saipem shipThe Italian drilling and engineering provider Saipem cuts another 800 employees from European-based facilities during the next three years and started organizational and business restructuring. The company approved 3-year strategic plan for business management, which aims to keep the subsea operator competitive against the continued challenging market conditions and crisis in the offshore sector. Saipem will create five business divisions, separated by sectors, including offshore construction, offshore drilling, onshore construction, onshore drilling and high added value engineering activities and services. With the new restructuring will be cut another 800 employees from the European-based facilities, in optimization of operational costs.

“The downturn in our sector, which is lasting longer than initially expected, has affected market prospects and requires reduction in the value of the Company’s asset base. The Strategic Plan that we have just approved aims to respond to these challenges through the adoption of a new organizational model”, said the CEO of Saipem, Stefano Cao.

With the plan for organizational and business restructuring, Saipem forecast revenues of 10.9 billion USD in 2017 with net profit of 220 billion USD.

The company already cut 8,000 employees in massive lay-off, which started in 2015. Also succeeded to reduce the operational expenses with 1.4 billion USD after optimization of activities and restructuring.

Saipem S.p.A. is an Italian oil and gas industry contractor, which is a subsidiary of Italian energy company Eni. Saipem has been contracted for designing and constructing pipelines, offshore drilling and engineering activities.