Oil and gas engineering heavyweight Enermech has announced plans to cut 120 jobs in Aberdeen as fears mount that a leading sector player will axe hundreds more.
The cuts at Enermech form part of a programme that will see the firm shed 250 jobs around the world after moving to reduce its debts.
Wood, which has headquarters in Aberdeen, is reported to be preparing to announce swingeing job cuts alongside its annual results next week.
Enermech said it has completed a recapitalisation which will allow it to secure a “substantial debt reduction”, without giving details.
It is understood that private equity giant Caryle has sold its controlling stake in Enermech. London-based Polus Capital Management has acquired a majority interest in Enermech. JP Morgan and Intermediate Capital have also bought into the business.
READ MORE: North Sea giant generates $1bn cash after Aberdeen job cuts
The new owners are thought to have launched an efficiency drive after Enermech faced pressure on margins amid the recovery from the pandemic.
The recapitalisation paved the way to a management shake up at Enermech, which is parting company with chief executive Christian Brown. He has led the business for four years.
Mr Brown will be succeeded by oil services veteran Charles Davison.
On its website Enermech says: “We are pleased to announce that we have a new board of directors coming soon as a result of our recent recapitalisation.
“This change represents an important milestone in our company’s journey, and we are confident that it will bring fresh perspectives and strategic guidance to drive our future growth and success.”
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Reuters said Wood was preparing to cut 200 jobs to help boost efficiency citing a report on Sky News.
Wood held talks about a potential takeover with Apollo Global Management last year. Apollo increased the price on offer three times, to £2.2 billion including debt, but eventually walked away.
In response to a query about the reported plans for jobs cuts, a spokesperson for Wood said the company would not comment on speculation ahead of publication of its annual results on Tuesday.
The company employs around 6,500 people in the UK. The bulk are based in Aberdeen or work offshore in the North Sea.
Wood and Enermech became leading lights of Scotland’s oil services industry after using expertise acquired in the North Sea to win business around the world.
Oil services businesses are positioning themselves to respond to the global drive to develop lower carbon energy sources to reduce emissions.
Carlyle bought Enermech in a £450m deal in 2018. Enermech employed 4,116 people globally in January.
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