WOOD Group chief executive Robin Watson has defended the hefty job cuts made by the oil services giant in recent years in the North Sea highlighting the risk it may have fallen victim to a takeover without them.
Aberdeen-based Wood has axed more than 2,000 UK jobs in response to the downturn in the key North Sea market amid the crude price plunge since 2014.
“I don’t earn any medals from retaining a head count that we can’t sustain because activity has fallen off and then we get taken over and if we get taken over by someone who’s much more hostile than us …” said Mr Watson.
While Wood faced strike action last year in response to reforms to pay and conditions for offshore workers, Mr Watson insisted it had been fair in making changes that were essential to boost competitiveness.
He noted job losses had affected senior management levels. Pay freezes Wood imposed applied to directors.
Mr Watson reiterated his view the £2.2 billion takeover of engineering giant Amec Foster Wheeler Wood completed this month would help the company achieve strong growth, while reducing its reliance on the North Sea.
However, Wood expects to have a significant business in the area for decades.
“There’s enough potential projects around, there’s still 20 billion barrels in the ground that’s producible,” said Mr Watson. “It’s making it commercially viable that is the task we all have.”
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