Aker Solutions has notified employees in its maintenance, modifications and operations (MMO) unit across Norway of necessary steps to reposition the business and enhance competitiveness in a market with unprecedented challenges.
The company is streamlining the Norwegian MMO business to one regional unit from previously four, affecting management and staff from Tromsø to Stavanger.
Depending on future work levels, as many as 900 permanent positions may be impacted at facilities in Stavanger, Bergen, Kristiansund, Trondheim, Tromsø and Sandnessjøen as well as offshore. The workforce reductions will be made through regular employee turnover, reassignments to other parts of the company and redundancies.
A process to implement about half of the reductions will start immediately. Remaining adjustments will depend on work levels throughout the year. The company has previously reduced capacity in its Norwegian MMO business by about 1,300 permanent and temporary positions since July 2014 to adjust to a market slowdown.
'These measures are painful but necessary to strengthen the competitiveness and longer term potential of our Norwegian MMO business, which has suffered from a sharp drop in activity in Norway's offshore services market,' said Luis Araujo, chief executive officer of Aker Solutions.