Dutch marine companies supplier Royal Boskalis Westminster has introduced plans to chop roughly 650 jobs worldwide over the subsequent two years because it takes 24 vessels out service.

The job cuts come following an inside fleet rationalization research undertaken in mild of deteriorating market situations and an anticipated extended interval low power and commodity costs.

The 24 vessels can be taken out of service starting this 12 months and thru 2018, together with ten in Boskalis’ dredging division and fourteen in its offshore power division. These will embrace the trailing suction hopper dredgers, cutter suction dredgers, anchor dealing with tugs and heavy transport vessels, the corporate mentioned.

Boskalis added that the plan can be carried out by means of the scrapping, sale and lay-up of vessels.

The fleet rationalization may even have implications for the corporate’s workforce, with a complete of round 650 workers to be made redundant, together with about 150 of its Dutch workers.

“After a few very busy years the market outlook for Boskalis has changed drastically as a result of continuing low energy and commodity prices,” Peter Berdowski, CEO Boskalis. “The volume of work in the market has fallen sharply and this is putting pressure on the utilization rate of our vessels. Because we expect these market conditions to persist in the coming years it is essential that we adapt the size and composition of our fleet to this new reality. We are fully aware that this intended decision is drastic and that it will have a major social impact. While we will try to absorb the work force reduction through attrition and redeployment wherever possible, compulsory redundancies unfortunately look to be unavoidable. A reduction of the number of vessels and jobs is however necessary to ensure that Boskalis remains healthy going forward.”