In response to the continued market decline in the offshore industry and the recently announced vessel divestment plans and offshore staff reduction, Maersk Supply Service today announced that the onshore organisation will be reduced by up to 25%.
Despite extensive cost reductions the past years the decreasing market demand in the offshore industry continues to put pressure on earnings and in Q2 Maersk Supply Service made a loss including impairments of USD 106m. In August Maersk Supply Service announced that it is divesting up to 20 vessels from its legacy fleet and making around 400 crew members redundant.
“We realize that the announcement is very unsettling for our employees. This is an unfortunate, but necessary step to ensure our organisation reflects the current market reality. Our top line has dropped by 40% over the past 2 years, and as a consequence we have a significantly reduced vessel and crew pool. A rightsizing of our organisation is necessary to protect the long-term sustainability of our business,” says CEO of Maersk Supply Service, Jørn Madsen.
The broadbased rightsizing is expected to concern all onshore functions of Maersk Supply Service. Up to 65 onshore positions will be affected globally.
Maersk Supply Service provides marine services to the oil and gas industry worldwide. Maersk Supply Service is the market leader in deep-water services such as anchor handling in ultra-deep water, mooring installations, rig moves and transport of equipment to drilling rigs and production units. Maersk Supply Service employs an international staff of around 1350 offshore and 260 onshore people. Headquartered in Lyngby, Denmark, Maersk Supply Service is represented globally with offices in Aberdeen, St. John’s, Rio de Janeiro, Lagos, Luanda and Perth. Maersk Supply Service is a part of Maersk Group which employs around 89,000 people in over 130 countries. Maersk Supply Service belongs to the Group’s fifth core business APM Shipping Services, which apart from Maersk Supply Service consists of Damco, Maersk Tankers and Svitzer. In 2015 Maersk Supply Service delivered a profit (NOPAT) of USD 147 million.