Offshore engineering and building contractor Subsea 7 has introduced a second part of world downsizing that can embrace the elimination of about 1,200 extra jobs by early subsequent 12 months.

Subsea 7 cited the continued troublesome enterprise and financial circumstances within the oil and fuel market as the rationale for the most recent spherical of world resizing and price discount measures, which can start 2016.

Under this system, Subsea 7 says it’ll take measures to scale back its world workforce to eight,000 by early 2017, down from 9,200 at the moment. In addition, as much as 5 vessels are scheduled to depart the present lively fleet by the use of stacking owned vessels and returning chartered vessels as contracts expire.

The majority of the layoffs might be within the UK and Norway.

The firm may also be restructuring its group to incorporate simply SURF and Conventional, i-Tech Services, and Corporate (Renewables and Heavy-lift) enterprise models.

“Our new organizational structure reflects our focus on commercial and long-term strategic priorities as we adapt to the present low levels of activity and drive more efficient ways of working with our clients,” commented Jean Cahuzac, Chief Executive Officer. “The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle.”

The newest cuts comply with an preliminary spherical of price discount measures initiated in May 2015. During that first part, Subsea 7 sought to rescue its workforce by roughly 2,500 by early 2016, down from the 13,000 reported on the finish of 2014.

Subsea 7 estimates that the mixed measures from the 2 phases will result in roughly $350 million in annual financial savings, lower than $100 million of which might be acknowledged in 2016.

“We remain confident in the long-term future for deepwater oil and gas production. We are committed to retaining our core capabilities and developing our leading market position through a strategy focused on differentiation delivered by our people, assets and technology,” added Cahuzac.