Statoil cost cuts deepen / Energy / The Foreigner

Statoil cost cuts deepen. Expenses are to be reduced by a further 20 per cent, the Norwegian energy giant says. The company has already cut costs via 1,950 redundancies or outsourcings. An equal, or at worst larger number of positions are now in danger of being affected, reported business daily Dagens Næringsliv, Monday.

statoil, cuts, jobs, redundancies, costs



The Foreigner Logo

The Foreigner is an online publication for English speakers living or who have an interest in Norway. Whether it’s a glimpse of news or entertainment you’re after, there’s no need to leave your linguistic armchair. You don’t need to cry over the demise of the English pages of Aftenposten.no, The Foreigner is here!

Norske nyheter på engelsk fra Norge. The Foreigner er en engelskspråklig internett avis for de som bor eller som er interessert i Norge.

Google+ Google+ Twitter Facebook RSS RSS



Energy Article

LATEST:

Statoil cost cuts deepen

Published on Monday, 13th April, 2015 at 13:10 under the energy category, by Michael Sandelson   .
Last Updated on 8th May 2015 at 13:29.

Expenses are to be reduced by a further 20 per cent, the Norwegian energy giant says.

New Identity, Statoil
Some 2,400 jobs are potentially at risk.New Identity, Statoil
Photo: Øyvind Hagen/Statoil


The company has already cut costs via 1,950 redundancies or outsourcings.

An equal, or at worst larger number of positions are now in danger of being affected, reported business daily Dagens Næringsliv, Monday.

Some 2,000 engineers could find themselves out of a job if the cuts affect Statoil’s 12,000 employee-strong technical divisions.

Various groups at the company are currently examining possibilities as part of an efficiency drive.

This is Statoil’s so-termed STEP move (Statoil Technical Efficiency Programme), aimed at saving USD 1.7bn annually from 2016.

STEP’s 20 per cent general cost reduction might mean that a total of 2,400 staff within this section of the company will have to go.

Statoil has already axed costs of some USD 602.5m since 2013 (today’s ROE), according to regional publication Stavanger Aftenblad.

At the same time, oil prices have sunk from USD 100 per barrel to under USD 60 a barrel since STEP was launched in the spring of 2014.

“Work is now proceeding at full speed ahead. The reality of this process will not become apparent before even closer to the summer,” Statoil communications director Jannik Lindbæk jr. said to DN.

Unions, professionals, and employee representatives are involved “to ensure good quality [in the process]. But the entire industry is currently in an exceptional situation, and it also affects people at Statoil,” he explained..

CFO Torgrim Reitan commented to Stavanger Aftenblad that the cost reductions are “neither simple, nor comfortable, but necessary.”

The STEP groups are expected to present their findings at some stage in May.




Published on Monday, 13th April, 2015 at 13:10 under the energy category, by Michael Sandelson   .
Last updated on 8th May 2015 at 13:29.

This post has the following tags: statoil, cuts, jobs, redundancies, costs.





  
Do NOT follow this link or you will be banned from the site!