SBM Offshore announced that it is in the process of releasing approximately 600 contractor staff and an equal number of permanent staff, totalling approximately 1,200 positions worldwide, over the period 2014 and 2015. Workforce reduction plans will vary by country, based on local legal requirements and in close consultation with work councils and employee representatives, as appropriate. The restructuring is expected to generate annualised savings of approximately USD 40M relating to company employees only. Total redundancy costs of USD 25M are expected, of which USD 17M will be recorded in 2014 and a further USD 8M in 2015.
SBM Offshore also announced that it would be relocating its corporate headquarters to Amsterdam effective from the third quarter of 2015. The international orientation, presence of many other stakeholders in the Netherlands, the company’s Euronext listing and the proximity to the industry and Schiphol airport are expected to provide many advantages to SBM Offshore. Approximately 100 people are expected to work with the Management Board from new offices in the Amsterdam region. Monaco remains a strategic location for technology, engineering and operations.
Bruno Chabas, CEO of SBM Offshore, commented: “Although we regret losing some of our colleagues, we believe these steps are necessary to deliver value to our stakeholders and drive profitable growth over time.”