Beerenberg forecasts that the company will need to layoff an additional 250 employees. This announcement comes after 250 layoffs have already been announced and means that the oil service provider will have cut over 500 positions be the end of the layoffs.
The loss of jobs comes shortly after Beerenberg lost a contract with Ekofisk worth NOK 400 million per year.
The downsizing in this round comes as a result of a major new construction project in Norway, where Beerenberg today have high activity, will be completed in spring 2017.
They will therefore build a significant overcapacity within the company's staffing
The market is still very challenging, and there are no indications that the decline will slow in the coming months. This will provide a long-term solution for the company and therefore layoffs are a suitable instrument said communication manager Ole Klemsdal in Norwegian.
Preliminary estimates indicate that an additional 250 employees will be terminated in the period up to the New Year. This is in addition to the 250 redundancies that were issued in the previous quarter. More adjustments will continuously be assessed in the first half of 2017.
Source: Global Oil & Gas
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