Oslo — Norway’s largest oil services firm Aker Solutions said on Friday it had laid off workers and scaled back investment plans in response to an oil price slide and the coronavirus outbreak, and may restructure further.
The company has issued notification of temporary lay-off to all its 6,000 employees in Norway due to business disruptions caused by the coronavirus outbreak, and said it is mulling a further round of restructuring to re-adjust global capacity.
With oil and gas projects in 2020 and 2021 at risk of being postponed or cancelled, the oil supplier industry is facing a new wave of consolidations and bankruptcies, it said in its annual report.
“Aker Solutions is taking a number of measures to mitigate substantial negative impact for the company including layoffs, reduced investment plans and close collaboration with customers, banks and financial institutions, suppliers and employees,” it added.
The company’s subsea manufacturing plants in Malaysia and Brazil have been temporarily shut down, and many foreign contract workers have been sent home from its Norwegian operations.
Aker Solutions announced in January plans to cease subsea equipment production at its plant in Norway, and said on Friday it was considering further steps.
“To reduce the negative impact on financial performance, the company is assessing further restructuring globally to align the capacity with the demand for products and services,” it added.
The company had about 16,000 employees in 25 countries at the end of 2019.
Oslo-listed Aker Solutions shares were trading 3.2% down on Friday morning, in line with the broader European oil and gas index.
The shares of the company controlled by Norwegian billionaire Kjell Inge Roekke have fallen about 78% since the start of the year.
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