Technip to lay off 6,000 workers
French engineering company Technip said on Tuesday it will lay off 6,000 workers as parts of its plans to restructure and make significant cost savings.
The firm is targeting savings of over $900mn, $770mn of which to be delivered in 2016 and the balance in 2017.
Technip also said it is anticipating an even more challenging environment in oil and gas, adding that "the sharp fall in oil prices has had a substantial impact on clients’ behavior, national and international oil companies alike."
"New projects continue to be deferred as clients assess their investment priorities in a durably changed oil price environment; on occasion there appears to be irrational behavior in bidding on some of the projects that are being sanctioned.
"Negotiations have been protracted on contract changes and variations, in particular on onshore and offshore projects, where some discussions are now even stopped and will find their resolution through a legal process.
"We conclude that these trends have not improved and, in some cases, have actually worsened over the last two months," Technip said.
The company will pursue the streamlining of its activities which it started last year to focus on its core assets and activities. Employees will be informed and employee representatives consulted in due time on a local basis.