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.


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