Rowan Drilling UK is said to be considering reducing its headcount by up to 900 positions.
The Aberdeen-based company is understood to have issued an “at risk notice” to its entire workforce.
According to reports, offshore employees of Rowan Drilling UK North Sea have also received a second communication which notified them the redundancy consultation process had begun.
A letter to staff states the reduction in staff is being made as the company faces the current challenges within the oil industry.
The note to staff says the “dramatic reduction in the price of oil, coupled with escalating costs, has led to a slow-down in drilling activity.”
The company’s three rigs, the Rowan Gorilla V, Rowan Gorilla VII and Rowan Stavanger, have around 300 crews on each.
More to follow.