Aker axes 650 jobs following oil market slowdown
AN oil firm has blamed the continued slowdown in North Sea oil production for its decision to axe 650 jobs, including 100 in Aberdeen and London.
Norwegian supplier Aker Solutions has announced it is also cutting posts in Norway and India after what it described as a “market slowdown”.
It came the day after experts predicted that investment in the region will fall 30 per cent, about £2.6 billion this year, although there have been recent rises in the price of oil.
A spokesman said: “Aker Solutions today informed employees of the need to reduce the company’s workforce capacity.
“About 650 positions, mainly in Norway, the UK and India, may be affected.
“The adjustments are being made because of the continued market slowdown and as part of a global reorganisation that will strengthen the company’s competitiveness.”
The North Sea oil and gas industry has seen widespread job losses since oil prices collapsed more than 18 months ago.
More than 65,000 people associated with the industry have been put out of work since Brent crude tumbled from a high of more than $110 a barrel in June 2014.
Industry body Oil and Gas UK has said up to 120,000 jobs linked to the UK sector could be lost by the end of the year due to the current market conditions.
On Wednesday, management consultants Wood Mackenzie said total spending by firms will remain under pressure in the North Sea barring a dramatic increase in exploration activity and further cost cutting moves.