SBM to Shed 1,200 Positions in Restructuring Move

SBM to Shed 1,200 Positions in Restructuring Move
SBM Offshore is to cut 600 contractor staff and a similar number of permanent employees in order to optimize its cost base.

Dutch oilfield services firm SBM Offshore announced Thursday that it will cut 1,200 positions out of the 10,500 people it employs worldwide by the end of 2015 as it seeks to reduce costs in a tough market environment.

The news comes less than a month after the firm settled a bribery case with Dutch prosecutors for $240 million following a two-year inquiry into improper payments to government officials in Angola, Brazil and Equatorial Guinea by sales agents between 2007 and 2011.

SBM said it would cut 600 contractor staff and a similar number of permanent employees in order to optimize its cost base. The cuts will vary by country, depending on local legal requirements, it added.

The firm believes that the restructuring of its business will generate annualized savings of approximately $40 million, with total redundancy costs amounting to $25 million – of which $17 million will be recorded in 2014.

SBM CEO Bruno Chabas commented in a company statement:

"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."

SBM also announced a plan to relocate its corporate headquarters from Schiedeam, Netherlands, to Amsterdam during the third quarter of 2015.

The firm provides floating production solutions to the offshore energy industry, with its main activities being the design, supply, installation, operation and life extension of FPSO (floating production, storage and offloading) vessels.

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