Maersk slashes 220 UK jobs amid oil price slump

Oil and gas company Maersk Oil has confirmed it is to cut about 220 jobs in the UK.

Maersk Oil is to cut 1,250 jobs this year

The Danish operator said it was reducing its workforce by between 10 and 12 per cent globally as part of a drive to cut operating costs by 20 per cent by the end of 2016.

The UK jobs are linked to the retirement of the North Sea Janice oil installation and changes to offshore rotations.

Maersk Oil said the move followed an “extensive internal review of business activities and continued low oil prices”.

It brings the total number of positions taken out of the organisation during 2015 to about 1,250.

Chief executive Jakob Thomasen said: “These are difficult decisions for any business and my immediate concern is for the welfare of those affected directly by today’s news.

“We are operating in a materially-changed oil price environment and have taken necessary decisions to reduce activity levels through 2015 and ensure we focus where we can see adequate returns from our most robust projects.

“This approach has seen us sanction mega-projects like Johan Sverdrup and Culzean during the year.

“We remain focused on longer-term growth opportunities, which play to our technical strengths, and the continued safety of all our people and assets.”