Maersk Supply Service cut 25% from it onshore workforce

Maersk Supply vesselThe offshore operator Maersk Supply Service cut 25% from it onshore workforce. The company will lay-off 65 employees from the offices worldwide in response to the continuing market decline of the offshore oil and gas industry, which seriously affected the finance stability of the operator. The restructure aims to improve the cash flows and finance stability of the company, which posted loss of 106 million USD in Q2 2016. The current wave of job cuts will not affect the sea workers, as in August the company decided to divest 20 vessels from its fleet and to lay-off around 400 employees. Maersk Supply Service is suffering from low liquidity and decreasing cash flows, due to the crash of the offshore industry, caused by the prolonged decrease in oil prices.

“Despite extensive cost reductions, declining demand in the offshore industry continues to put pressure on earnings”, said the CEO of Maersk Supply Service, Jorn Madsen. “We realise that the announcement is very unsettling for our employees. This is an unfortunate, but necessary step to ensure our organisation reflects the current market reality. Our top line has dropped by 40% over the past two years, and as a consequence we have a significantly reduced vessel and crew pool. A rightsizing of our organisation is necessary to protect the long-term sustainability of our business”, added he.

Maersk Supply Service is part from the shipping group AP Moller Maersk. The company provides reliable, safe and efficient marine services to the global oil and gas industry, being one of the market leaders in deep-water services.