Maersk Oil to cut workforce to save costs

Maersk Oil, the oil and gas business of Maersk Group, will lay off 10 to 12 percent of its global workforce to adapt to the market and reduce costs, the company announced Monday.

"The move, as part of the company's drive to reduce operating costs by 20 percent by the end of 2016, follows an extensive internal review of business activities and continued low oil prices," Maersk Oil said in a press statement.

"We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015, and ensure we focus where we can see adequate returns from our most robust projects," said Maersk Oil CEO Jakob Thomasen.

The actions will see a reduction in the number of employee and contractor roles in a range of Maersk Oil business locations, as well as the company's headquarters. A total of 1,250 employees are expected to be made redundant during 2015.

Business units in Qatar and Norway will implement reductions in line with the 10 to 12 percent range, with slightly lower levels in the Danish operations, in Kazakhstan and in the company's Copenhagen headquarters, the statement said.

Maersk Oil has previously announced plans to reduce headcount by around 220 positions in Britain, as well as 60 redundancies in Angola and the United States.

"We expect the pressure to continue into 2016 and we must remain cost-focused to grow in this market," said Thomasen. Endit