Aker Solutions has notified employees in its maintenance, modifications, and operations (MMO) unit across Norway that its streamlining of this unit may impact as many as 900 permanent positions in Stavanger, Bergen, Kristiansund, Trondheim, Tromsø, and Sandnessjøen, as well as offshore. The workforce reductions will be made through regular employee turnover, reassignments to other parts of the company, and redundancies.
A process to implement about half of the reductions will start immediately. Remaining adjustments will depend on work levels throughout the year. The company has previously reduced capacity in its Norwegian MMO business by about 1,300 permanent and temporary positions since July 2014 to adjust to a market slowdown.
There has been a downturn in investments in the Norwegian oil and gas market since 2014. Aker Solutions expects the MMO market in Norway to continue to be challenging in 2016. Work volumes will also be impacted as the company's long-term maintenance and modifications framework agreement with Statoil expires in the first half of this year.
As a result, the company's prefabrication workshop in Sandnessjøen will be temporarily shut down for about three years. MMO operations in Tromsø will also be terminated, though some employees in this strategically important northern location will likely be kept on as part of the company's Arctic Hub. These employees will join Aker Solutions' Engineering and Front End Spectrum teams.
Aker Solutions has about 16,000 permanent employees in some 20 countries. About 5,000 employees are in the MMO area, of which approximately 3,600 are in Norway.