Maersk Drilling has announced that it is reducing its headcount at its main office in Copenhagen by about 70 positions.
“This is a response to the continued market decline and reduced activity level in the oil industry,” Maersk Drilling said in a statement Monday.
The latest round of cuts are in addition to approximately the 600 offshore employees who have lost their jobs in the past year due to rig layups.
“The combination of low activity levels and excess capacity of drilling rigs continue to drive lower utilisation and lower day rates. At present, nine out of Maersk Drilling’s 23 units are lying idle, and we expect the market balance to be challenged in the coming years,” says Claus V Hemmingsen, CEO of Maersk Drilling and Vice CEO of the Maersk Group and continues,
“To date, Maersk Drilling have managed to reduce cost by more than 15%. However, the adverse market conditions continue to heavily affect us, and an onshore staff reduction is an unfortunate but necessary step to safeguard the future of our company.”
Maersk Drilling says that while the staff reduction is expected to concern mostly its headquarter office in Copenhagen, functions in other locations might also be affected.
Last month, Maersk Group, the parent company to Maersk Drilling, announced it was splitting up the company to focus more on its core transportation and logistics services and away from its oil and oil related businesses. Under the plan, Maersk Drilling, Maersk Oil, Maersk Supply Service and Maersk Tankers, will be reorganized into their own, independent Energy division within the A.P. Møller – Mærsk A/S.