Scores of workers are facing redundancy at a subsea equipment firm in Aberdeenshire following a drop off in work.
Up to 90 staff of OneSubsea, a subsea services and equipment subsidiary of oilfield services giant Schlumberger, are part of the consultation to reduce the company’s headcount in Portlethen.
Employees will not be included in the Covid-19 furlough scheme.
One affected worker, who did not wish to be named, said a number of contracts had been cancelled in the wake of the Covid-19 outbreak.
It is thought OneSubsea’s offshore division in Portlethen employs around 130 workers.
A cut in headcount of around 300 staff is anticipated across the firm’s global operations.
Final decisions on job losses will be made in June.
A spokeswoman for OneSubsea said the firm had been “severely impacted” by the economic consequences of the Covid-19 pandemic and the decline in oil price.
She added: “As a service company, we must adjust our resources to our customers’ demand in line with business activity, therefore, we are in a position of having to consider reducing our headcount.
“We have started collective consultation regarding a potential headcount reduction for operations activity based out of Portlethen, Aberdeen.
“During this period, Schlumberger OneSubsea UK management will meet with employee representatives to discuss options. We cannot say at this stage how many people may be impacted.
“Prior to taking this step, we have implemented various measures including the government Covid19 furlough scheme in some parts of our business. We regret that on top of the cost cutting measures already taken, we have to consider redundancies given the business outlook for the oil and gas.”
OneSubsea, headquartered in Houston, has sites in the UK, Canada, Indonesia, Romania and Bangladesh.