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Maersk oil companies axe 120 jobs

The dramatic decline of the oil price makes the two Maersk companies, Maersk Drilling and Maersk Supply Service, cut 120 jobs and launch cost cutting programs.

Maersk Drilling has initiated a larger cost reduction and efficiency enhancement program in response to the weakened market for offshore rigs and lower rates. As part of this program, Maersk Drilling will reduce the number of positions by 90 in the Copenhagen head office. Between 40 and 50 will be found through redundancies.

"The fall in the oil price over the last six months has further intensified the capital discipline among our customers, leading to lower demand for offshore rigs and pressure on day rates. In order to remain competitive in this market, we need to look at ways to reduce costs and enhance efficiency. One of the ways to reduce our costs is to reduce the number of positions in our head office," says Claus V. Hemmingsen, CEO in Maersk Drilling and member of the Executive Board in the Maersk Group in a press release and continues:

"It is regrettable that we have to scale down the head office, however, under the current market conditions it will be irresponsible not to act. The reduction in positions in the head office will not impact the safety and operational performance of our rigs."

To safeguard the company

Maersk Supply Service also informed that staff reductions in the carrier's headquarters in Denmark will be performed as a consequence of the low oil price, implicating the reduction of approximately 30 onshore positions. Of these, about 20 are expected to be actual terminations.

"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," he adds.

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