National Oilwell Varco Norway Cuts 900 More Jobs
07 Dezembro 2015 - 9:10AM
Dow Jones News
By Kjetil Malkenes Hovland
OSLO--National Oilwell Varco Inc.'s (NOV) Norwegian arm said
Monday it is shedding 900 jobs, bringing total cuts this year to
2,400, or roughly half its worforce, as redundancies in the
industry bite deeper.
The company said employees had been informed by email that 900
permanent jobs would be cut, and that manufacturing operations in
southern and western Norway would be shut down. This comes on top
of announced cuts in June of 900 permanent jobs and 600 contract
workers, out of a total staff of nearly 5,000.
"The management of National Oilwell Varco Norway understands
that this creates uncertainty among our many employees," the
company said. "We will continue to focus on the importance of
carrying out an orderly process that takes care of all employees in
the best possible way."
The drilling equipment maker blamed the downsizing on reduced
spending by oil companies and lower sales of new equipment.
Oil companies operating in Norway expect their investments in
exploration and production to drop to 171 billion kroner ($19.83
billion) next year, from a record-high NOK214 billion in 2014,
according to Statistics Norway.
Industry association Norwegian Oil and Gas expects investments
to bottom out at NOK132 billion in 2017.
Statoil, Norway's dominant oil company, said earlier this summer
that it would shed up to 1,500 permanent positions and 525
consultants from a total Norwegian workforce of 20,709, as part of
a program targeting $1.7 billion in annual cost savings by
2016.
The string of job cuts by major employers in the Norwegian oil
sector highlights how a drop in oil prices since last summer, from
well above $100 per barrel to less than half that level, is forcing
oil companies and oil-field services businesses to tighten their
belts following years of rapid expansion and cost inflation.
Oil traded Monday at around $43 per barrel.
The Houston-based National Oilwell Varco had 63,642 employees
globally by the end of 2014 and its Norwegian arm contributed about
4% of the company's $21.44 billion in total revenue last year.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
(END) Dow Jones Newswires
December 07, 2015 05:55 ET (10:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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