AN energy firm has announced it is to cut up to 97 jobs and is also considering brining in pay cuts.

Hydrasun in Aberdeen, which employs 338 people, has begun a consultation with staff on the proposed redundancies.

Chief executive Bob Drummond said pay cuts would also be considered as part of a range of options, and that he hoped the final figure on job losses would be smaller than 97.

The company said in a statement: "As is the case with many other companies, Hydrasun is currently experiencing significant challenges in the face of the severe downturn in the oil and gas industry.

"Unfortunately, the consequential effect of this is that the business cannot sustain its current cost base and we are therefore currently considering a number of possible options with regards to achieving substantial cost reductions.

"While the detail of these options has yet to be finalised, the situation is that up to 97 positions within our Aberdeen HQ operations are being considered for possible redundancy, along with a potential pay cut of up to 12%.

"We have commenced the consultation process with our staff and expect to have this completed and the final details confirmed by the end of October."

The statement added: "We are acutely aware that this is a very difficult and unsettling time for all of our staff and have assured them that we will endeavour to complete the process as quickly as possible."