Maersk Announces Layoffs

maersk supply service
Image courtesy Maersk Supply Service

The offshore sector took another hit today as Maersk Supply Service and Maersk Drilling both announced major layoffs at their corporate headquarter in Denmark.  Maersk Supply says they will be laying off 20 of their employees and Maersk Drilling will be reducing head count by 90.

“We are facing challenging market conditions in the coming years. Oil prices have dropped dramatically and exceedingly fast in recent months and our customers, suppliers and competitors are all being forced to adjust to a new reality,” says Carsten Plougmann Andersen, CEO in Maersk Supply Service.  “To safeguard Maersk Supply Service’s future profitability and ability to compete in a challenged market, we have launched an end-to-end review of all earning potentials and cost drivers in Maersk Supply Service, including optimizing organizational effectiveness which regrettably has necessitated these staff reductions.”

Maersk Supply Service is just one of the many offshore supply boat companies that is feeling the effects of low oil prices.  In the Gulf of Mexico, Hornbeck Offshore has already stacked at least five of their new next-generation offshore supply vessels and gCaptain readers have recently told gCaptain that layoffs are currently underway.  Matching 401k contributions at the company have also been curtailed as of 1 January.

Further reading: Noble Drilling Announces Retirement of Three Semi-Submersibles