Songa Cuts Onshore Staff Size by 200, Closes Aberdeen and S. Korean Offices

Norway's Songa Offshore SE responded to the downturn in the global oil and gas industry by reducing the staff size of its onshore employees and contractors by 200, a move that will trim the company's annual expenses by approximately $30 million.

The firm indicated that it "is now transforming from being largely a projects organization to an optimized operating organization," Songa said in a press release Tuesday, with the staff reduction comprising 76 employees and 124 contractors.

Songa revealed that it will centralize the support functions out of Norway and planned to close offices in Aberdeen and South Korea.

"Headcount reductions will primarily take place in the project organization in South Korea and the project supporting organizations in Stavanger and Aberdeen. The process will also include a rightsizing of the operating and staff organizations in Cyprus, Stavanger, Oslo and Bergen," Songa added.

The offshore organization is not affected by this process.

"This is a very important and necessary adjustment of our organization to secure Songa Offshore's competitiveness and sustainability in an extremely challenging drilling market", CEO Bjornar Iversen said.

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