Technip, a world leader in project management, engineering and construction for the energy industry, has announced a plan to cut its global workforce by approximately 6,000 positions.
The restructuring will accelerate cost reduction and efficiency in response to the downturn in the oil and gas market. "Employees will be informed and employee representatives consulted in due time on a local basis", highlights Technips' press release.
There is no information about the countries affected, but management has mentioned to cut jobs in "some European countries, in Asia, in South-America as in Brazil". The restructuring plan targets savings of €830 million, of which €700 million to be delivered in 2016 and the balance in 2017.
In its press release, the group explains this restructuring by "the sharp fall in oil prices has had a substantial impact on clients’ behaviour, national and international oil companies alike: new projects continue to be deferred as clients assess their investment priorities in a durably changed oil price environment; on occasion there appears to be irrational behaviour in bidding on some of the projects that are being sanctioned; negotiations have been protracted on contract changes and variations, in particular on Onshore/Offshore projects, where some discussions are now even stopped and will find their resolution through a legal process."