Aker Completes More Than Two-Thirds of Cost-Cutting Program
Aker Solutions ASA revealed Tuesday that it has completed more than two-thirds of a program to increase cost-efficiency across its business by at least 30 percent by the end of 2017.
“We are making good progress on our company wide improvement journey,” Aker CEO Luis Araujo said in a webcast of the company’s Q1 results, which was attended by Rigzone.
“We are making these improvements by simplifying our methods, our organization set-up and our geographic footprint,” he added.
Despite admitting that the outlook for oil services remains challenging, Aker stated that there are some signs of recovery, particularly in the brownfield segment where oil companies are focusing on optimizing output from existing fields.
“Industry cost cuts are bringing down break-even costs on developments, which is expected to spur new investments and project sanctions this year,” a company spokesperson said in an Aker statement.
Aker has reduced its total staff count by almost 5,000 workers from 2014 to 2016, according to the company’s latest corporate responsibility report.
The firm’s workforce totalled 20,974 employees in 2014, which dropped to 16,177 in 2016. Although almost 2,000 workers were hired in Brazil during this time, as were 59 workers in Africa, staff levels dropped in North America, Asia Pacific, the UK, Norway and Europe.
Aker’s report also revealed an aging workforce, with 23.2 percent of its employees (not including contract staff) above the age of 50 in 2016, compared to 19.6 percent of the workforce in 2014. Additionally, only 15.5 percent of its workforce is now under the age of 30, compared to 22.6 percent in 2014.
The company continues to see overall revenue down by about 10-15 percent in 2017 from the prior year.
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