A number of workers for an Aberdeen-headquartered oilfield equipment firm have been terminated following the company’s decision to furlough hundreds of staff.
Sparrows Group took the decision to furlough around 200 employees last week due to the impact of the Covid-19 pandemic and low oil price.
But it has now informed some staff they are to be terminated as it looks to make further cuts to its workforce.
It is understood tens of workers could be affected by the decision.
Sparrows said the move to permanently reduce staff would impact “a small number of our offshore ad-hoc workforce”.
The Bridge of Don-based firm manages about 400 offshore employees from Aberdeen and has a total north-east headcount of about 1,000.
A Sparrows Group spokeswoman, said: “The combined Covid-19 crisis and a low oil price is having a debilitating impact on the sector with many upcoming projects either postponed or cancelled altogether.
“Like many other companies, Sparrows Group has had to take necessary steps to help sustain the business and protect the workforce in the long-term.
“In the first instance, this has included furloughing approximately 200 personnel through government schemes.
“Regrettably, we have also had to make the difficult decision to permanently reduce our headcount which currently affects a small number of our offshore ad-hoc workforce.”
“We are doing everything in our power to keep the impact on our people to a minimum while ensuring they stay safe and supported throughout this challenging time.
“Sparrows proved its resilience during the recent downturn, and we are confident that by implementing these measures, the business will remain sustainable in the long-term.”