EnerMech to shed 90 North Sea jobs

EnerMech currently employs 900 staff in the UK and about 50 in Norway

Aberdeen-based mechanical engineering group EnerMech has announced it is shedding a further 90 North Sea jobs as part of a major overhaul of the business.

EnerMech, which provides services to the energy industry, said it was making the cutbacks in the UK and Norway because of low oil and gas prices.

Other cost-cutting measures are thought to include pay cuts of up to 10%.

The company said many of the jobs affected were at management level.

EnerMech has been reducing its headcount over the past 18 months, having cut a total of 260 jobs in the UK and Norway since oil prices peaked in mid-2014.

EnerMech currently employs 900 staff in the UK and about 50 in Norway.

The company said it was bringing together its UK and Norwegian divisions under a single management structure in an effort to reduce its cost base.

'Right-sizing'

EnerMech chief executive Doug Duguid said his objective was to "right-size" the company in a market where oil, gas and LNG prices would remain lower "for the foreseeable future".

He said: "The oil and gas industry is facing up to the fact that it needs to recalibrate its approach on how it does business and we at EnerMech are reacting to a market in which I believe prices will remain lower for some time to come, and a new reality that low oil, gas and LNG prices, are here to stay.

"The industry is demanding greater collaboration and these changes form part of our long-term strategy to offer more integrated services and an alternative contracting model we believe is more suited to the changed market in which we operate.

"In reality, and regretfully, this means 90 posts in the UK and Norway will be lost, many of which will be at management level."

He added: "While our operations in the UK and Norway have faced tough challenges, we are continuing to grow our global business with particular bright spots including the Caspian, Australia and Africa."