Maersk Supply Service axes more jobs amid fleet reduction

October 3, 2016

Maersk Supply Service on Monday announced further job cuts at the company as a response to the continued market decline in the offshore industry and the recently announced vessel divestment plans.

Back in August, Maersk Supply Service announced that it was divesting up to 20 vessels from its legacy fleet and making around 400 crew members redundant.

According to the company’s statement on Monday, this time, its onshore organization will be reduced by up to 25%.

The company explained that despite extensive cost reductions the past years the decreasing market demand in the offshore industry continues to put pressure on earnings and in 2Q Maersk Supply Service made a loss including impairments of $106 million.

The broadbased rightsizing is expected to concern all onshore functions of Maersk Supply Service. Up to 65 onshore positions will be affected globally.

“We realize that the announcement is very unsettling for our employees. This is an unfortunate, but necessary step to ensure our organization reflects the current market reality. Our top line has dropped by 40% over the past 2 years, and as a consequence we have a significantly reduced vessel and crew pool.

“A rightsizing of our organization is necessary to protect the long-term sustainability of our business,” says CEO of Maersk Supply Service, Jørn Madsen.

In line with the decision to sell up to 20 vessels, Maersk Supply in early September sold the Maersk Forwarder platform supply vessel. In addition to the Maersk Forwarder, the company has so far sold Maersk Finder, Maersk Puncher, and Maersk Provider.

UK workers’ union RMT expressed its disappointment at Maersk’s plans to reduce its current fleet calling it a “bitter blow to an industry already decimated by too many job losses in the last 18 months”.

In related news, Maersk recently announced its intentions to separate the Group’s businesses into Transport & Logistics and Energy divisions as well as a number of management changes.

Part of this plan included naming Jørn Madsen, Maersk Supply Service CEO, a new CEO for Maersk Drilling. Madsen will assume his new position after a replacement CEO is named at Maersk Supply Service.

Offshore Energy Today Staff