Statoil to reduce workforce by end of 2016

Statoil’s efforts to standardize, simplify, and increase efficiency across its operations will now include a potential workforce reduction estimated at 1,100–1,500 permanent employees by the end of 2016. In addition, Statoil will further reduce its number of consultants by approximately 525. 

“Decisions on workforce reductions as a consequence of increased efficiency will be made in each business area, based on assessments involving leaders and employee representatives, and local consultation,” said Magne Hovden, Statoil’s senior vice president for people and organization. “When this is completed, we will know the accuracy of the current estimated range. This work will take place in the business areas in the period from August to November.”

The company's improvement program and capital expenditure prioritization was initiated in 2013, addressing the industrywide cost and competitiveness challenge, well ahead of the current downturn. Since the end of 2013, Statoil's workforce has been reduced by 1,340 permanent employees and 995 external consultants. The company said that the reductions have been achieved through more limited use of consultants, attrition, internal deployment into new positions, severance packages, and early retirement. Recruitment has been very limited, but the company has upheld its focus on recruiting apprentices and graduates.

Statoil has committed to delivering US$1.7 billion in annual savings from its improvement program in 2016 and beyond.

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...