Transocean Ltd. announced April 30 that it will cut jobs and close some of its onshore facilities in order to improve operating margins. While the number of workers expected to be cut has not been specified, the company said it will save approximately $300 million.
The cost reduction initiative is also intended to "align the company's shore-based support infrastructure with the post-divestiture size, composition and geographic location of its fleet," according to Transocean's statement. Transocean hopes the restructuring will result in a more efficient and focused organization. The company also wants to offer support to its rig operations without compromising safety or operational integrity.
The reduction in onshore costs will come from the consolidation of facilities, the streamlining of business functions and processes and from programs and tasks that are not central to supporting the company's core business of safely operating rigs.
The company said the realization of the shore-based initiative are expected to begin in early 2014. Transocean said the organizational efficiency initiative of onshore operations as well as an offshore operations initiative will improve the company's competitiveness.