Oil services firm Subsea 7 announced May 28 that it will cut its global workforce by a quarter and reduce its fleet of specialized vessels by up to a third to preserve cash following the slump in the oil market.

The company said it planned to lay off about 3,000 workers, both contractors and permanent employees, by the end of second-quarter 2021. The company has operations in about 30 countries but did not say where jobs would be cut.

Oil companies have reduced spending on new projects after oil prices hit decade lows earlier this year due to excess supply as travel and other restrictions imposed to contain the coronavirus pandemic slashed demand for fossil fuels.

“Faced with a significant deterioration in the oil and gas market, we are taking swift and decisive action to address the elements under our control,” Subsea 7’s Chief Executive John Evans said in a statement.

The London-headquartered company is controlled by Norwegian investor Kristian Siem, its chairman, and is listed in Oslo.

The company also said it would also reduce its fleet of 32 vessels—which lay pipes, lift heavy loads and launch ROVs among other tasks—by up to 10 vessels.

Subsea 7, which employs 12,000 people globally, said the measures are expected to result in about $400 million in annualized cash cost savings from the second quarter of 2021.

The company, which made an adjusted core profit (EBITDA) of $631 million in 2019, will also reduce its capital spending to minimal levels in 2021 and 2022, it added.