French oil services firm CGG announced Thursday that it plans to axe 930 positions across the group and reduce its marine fleet to five vessels by the second quarter of 2016.
The group stated that it is currently seeking the approval of its employee representatives for the proposed reduction plan for implementation by the first six months of next year. CGG also plans to divest some of its non-core assets, although no specific properties were named.
Commenting on the cutbacks, Jean-Georges Malcor, CGG CEO, said in the company’s third quarter 2015 statement:
“This adjustment of our fleet and the cost-reduction measures will result in the cut of around 13 percent of job positions worldwide. This new phase in our transformation plan is being submitted for the approval of our employee representatives to be implemented during the first half of 2016…We plan to finance the group needs, notably related to the transformation plan, through disposal of non-core assets and equity offering or sale of a minority interest. This new phase will allow us to build a rebalanced company supported by our unique positions in equipment, in multi-client, in imaging and reservoir and by our technology expertise in Data Acquisition. CGG should remain resilient all along the downturn of the cycle to become strongly cash-generative when the market bounces back.”
CGG recorded an operating loss, after non-recurring charges, of $963 million in 3Q 2015, compared to an operating loss of $14 million during the same period last year.
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