Aberdeen employer Petrofac to cut jobs amid coronavirus-led oil and gas downturn

Oil and gas services group Petrofac has announced plans to cut staff numbers by up to 20 per cent as it braces for a slump in demand amid the Covid-19 pandemic.

Petrofac is a major Scottish employer with hundreds of staff in Aberdeen and around 2,000 at offshore operations in the North Sea.

The FTSE 250 firm – a key Scottish employer with thousands of staff across operations in Aberdeen and the North Sea – said it was axing jobs and furloughing staff in anticipation of declining activity levels in the face of the virus crisis and lower oil prices.

It is aiming to lower headcount across its global workforce by up to a fifth.

Petrofac is also aiming to conserve cash and liquidity by reducing capital expenditure by 40 per cent and suspending its 2019 final dividend.

The efficiency measures are expected to lower overhead and project support costs by “at least” $100m (£81m) in 2020 and by as much as $200m in the following year.

Group chief executive Ayman Asfari said: "At this unprecedented time, our top priority remains the health and well-being of our people, clients and suppliers, and ensuring that we take decisive action to protect the long-term health of our business.

“We are taking swift, decisive action in response to the Covid-19 pandemic and lower oil prices to reduce costs, retain our competitiveness and preserve the strength of our balance sheet.”

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