International marine contractor Van Oord has revealed that it expects to reduce its global workforce by approximately 500 employees.
Of these, around 120 employees are expected to go in a collective redundancy plan in the Netherlands. The company said it has requested the Works Council for advice and noted that it will start consultation with Dutch unions, although no timeframe was given.
The pandemic is having a “major impact” on Van Oord’s business, according to the company, which said market conditions in the dredging industry are under pressure and that volatility in oil and gas prices is triggering a decrease of offshore field services. As a result, Van Oord outlined that it faces a decline in its turnover and a “deterioration” of its results.
“We will adapt and restructure the organization to this new reality to ensure that we remain healthy and to strengthen our competitive position,” Van Oord said in a company statement posted on its website.
“These are difficult measures for our company and employees. But we adapt to remain a healthy, innovative company that capitalizes on the longer term potential of its markets,” Van Oord added in the statement.
Van Oord is a Dutch family owned company with more than 150 years of experience, according to its website. The business specializes in offshore oil and gas, offshore wind and dredging services, and employed 5,217 full time equivalent workers last year, the marine contractor’s website shows.
As of June 16, there have been 7.9 million confirmed cases of Covid-19 around the world, with 434,796 deaths, according to the latest figures from the World Health Organization (WHO). The worst affected region, as of June 16, is the Americas, with 3.8 million confirmed cases of Covid-19 and 203,547 deaths, the latest WHO data reveals.
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