A fifth of North Sea oil firms to make more workforce cuts: Nearly a fifth of North Sea oil & gas companies forecast to carry out further redundancies in 2021.

This is according to a current survey done by Aberdeen and Grampian Chamber of Commerce in cooperation with the independent research area of the University of Strathclyde Fraser of Allander Institute & the professional services firm KPMG UK, that says almost 1/2 of firms have further reduced their staff due to a decline in operations.

Nearly 22% of those who are announcing reductions predict the equals to more than 10% of their workforce.

The discoveries of the study also show more than three-quarters of companies used at least one of the government’s Covid-19 schemes on offer – which is a total of 83% of contractors furloughed employees in 2020, affecting 35% of the workforce on average.

Almost 82% of the respondents expect a reduction in their revenue in 2020 & about 78% of businesses are less assured about activities going forward, as reported by the survey to which responded a total of 100 businesses employing 22,665 workers in the UK.

The study also reported 69% of contractors are thought to be involved in renewables in the next 3 to five years.

Martin Findlay, a Senior Partner at KPMG in Aberdeen, stated: “From the significant oil price decline, which started earlier in the year, to a global pandemic, and localised lockdown in Aberdeen, the oil and gas industry has, once again, endured profound challenge and uncertainty.

Climate change and diversification, once seen as a threat to the industry, also offers new opportunities and our findings suggest the sector is starting to embrace change.”

A fifth of North Sea oil firms to make more workforce cuts