London-based offshore engineering, construction and service contractor Subsea 7 SA said May 12 that its global workforce will be downsized to about 2,500 employees by early 2016, down from the 13,000 reported at year-end 2014.

Its global fleet will be also downsized to 11 vessels, the company added, noting this will be through nonrenewal of charter vessels and disposal or stacking of owned vessels. The fleet will be reshaped over the coming year, Subsea 7 said. At year-end 2014, there were 39 vessels and five were being built.

Consultations have begun in Norway and the UK. Consultation with employees and employee representatives will continue to take place on a local basis.

Subsea 7 is implementing these reductions as part of overall cost reduction measures due to declining workload and oil and natural gas economic conditions. The corporate organization is also restructuring.

Offshore