Wood Group Indicates Potential Job Cut Numbers Following Amec Deal
John Wood Group expects an overall potential reduction of approximately two percent of roles across the total combined group workforce, following its acquisition of Amec Foster Wheeler, according to documents published by Wood Group late Tuesday.
The proportion of cost savings expected to come from reducing headcount is approximately 60 percent, the document stated, and any headcount reductions will be “inclusive of natural attrition”.
Wood Group agreed to purchase rival Amec Foster Wheeler for $2.7 billion in March. Reuters reported in the same month that the merged company will employ 64,000 people. Based on this number, a two percent figure represents 1,280 workers.
Wood Group revealed last month that the combined group formed by John Wood Group plc’s acquisition of Amec Foster Wheeler plc would implement a number of workforce efficiencies.
The company has stated previously that cost synergies would be generated from the reduction of duplicate costs across country and regional leadership, board and executive leadership teams, and the consolidation of overlapping office locations.
When asked about any potential job losses as a result of the deal back in March, Wood Group refused to provide any detail but insisted that its aim was on growing employment in the long term.
“It is inappropriate at the current time to talk about how many jobs may go,” the representative told Rigzone at the time.
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