SBM Offshore to cut 1,500 jobs; 300 more than expected

SBM Offshore is laying off more workers , the gas and oil supplier announced on Thursday at the presentation of the figures for its first quarter performance. The company had a significantly lower turnover than a year before, partly because of the sharp decrease in the oil prices, reports Telegraaf.

SBM announced on Thursday that it would be cutting down 1,500 jobs. In December, the estimate by the company was at 1,200. The reorganization, including a move to Amsterdam, was originally expected to provide 40 million euros in savings.

The company reported quarterly revenues of 601 million dollars as opposed to 782 million a year earlier. Revenues from end products dropped by 40%, whereas other products showed a 16 percent decline. The company also saw a decline in received orders, from 244 million a year ago to 208 million in the last quarter.

The company announced earlier it expects a turnover of 2.2 billion in this year, and a reduction in its debt down to 3.5 billion. SBM also informed that it was still in negotiations with Brazilian authorities surrounding the local company Petrobas. Directors of the company did not further comment on the situation in Brazil.