Wood announced Thursday that it is taking action to “significantly” adjust its cost base in anticipation of a reduction in activity levels.
This action includes headcount reductions, temporary furloughing, unpaid leave and operational salary reductions, Wood outlined. The company is also cutting capital expenditure and implementing other overhead cost reductions, including the stoppage of discretionary spend and travel costs. In addition, Wood’s board has withdrawn its recommendation to pay the proposed 2019 final dividend.
“Like many companies, Wood is being affected by the unprecedented event of Covid-19 and its impact on the global economy - an event compounded by the sharpest decline in oil price in 20 years,” Wood Chief Executive Robin Watson said in a company statement.
“Our proven track record of leveraging our flexible, asset light model in response to changing market conditions stands us in good stead,” he added.
In response to the Covid-19 pandemic, Wood said it is following the guidelines issued by the governments in each of the locations in which it operates.
“We have taken significant steps to enable our workforce to work from home and deliver for clients resulting in over 40,000 employees successfully working remotely,” Wood said in a company statement.
“Many Wood employees continue to work safely at customer sites with a number involved in supporting vital services across the world during this challenging time,” Wood added.
As of April 2, there have been 896,450 confirmed cases of the virus around the world, with 45,526 deaths, according to the latest figures from the World Health Organization.
Wood, which is headquartered in Aberdeen, describes itself as a global leader in consulting, projects and operations solutions in energy and the built environment. The company operates in more than 60 countries and employs around 55,000 people, according to its website.
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