Layoffs expected at Fugro after €370 million loss

Fugro suffered a 373 million euro loss in 2015, mostly due to the low oil and gas market. And as the market shows no signs of improving, more layoffs seem "inevitable", according to CEO Paul van Riel, RTL Nieuws reports.

While 2015 ended in a loss for Fugro, the company did do somewhat better than in 2014 when it suffered a loss of 459 million euros. Last year's loss can mainly be attributed to depreciation totaling 322 million euros, due to poor market conditions. Turnover decreased with more than a sixth to 2.36 billion euros. Though some of that money was achieved by selling assets.

"We are dealing with an unprecedented downturn in our largest market: oil and gas services", Van Riel explained. But by reducing capacity, cutting costs and getting rid of non-strategic activities, the company nevertheless achieved a positive cash flow and managed to reduce its debts significantly, he stressed.

Last year Fugro laid off a massive 1,600 people, double what the company initially planned. And while more layoffs are expected this year, Van Riel hopes that it will be less than in 2015.