SINGAPORE: Singapore-based Keppel Corp announced on Thursday (Oct 20) it had cut around 8,000 jobs as weak energy prices hammered profits at the world's largest oil rig builder.
Senior managers have also taken voluntary pay cuts and there are plans to trim directors' fees as the conglomerate anticipates further cuts, the company said in a statement.
The "painful measures" are aimed at cushioning the impact of sluggish demand for drilling rigs as firms worldwide curtailed spending oil and gas exploration.
Keppel chief executive Loh Chin Hua said it had slashed its workforce at its offshore and marine business by "close to 8,000", or around 26 per cent, over the nine months to September.
"Much of the reduction has so far been through natural attrition," he said in announcing Keppel's third quarter to September earnings. "However, we will increasingly also look into early termination of contracts and selective retrenchment in Singapore, in line with the drop in workload."
Keppel said group net profit for the July-September period fell 38 per cent from the previous year to S$225 million (US$162 million) after net profit in its offshore and marine business plunged 93 per cent.
In the first nine months of the year, the group's year-on-year net profit was down 43 per cent to S$641 million, hit by a 69 per cent profit decline in the offshore business.
http://www.channelnewsasia.com/news...eppel-cuts-jobs-as-profits-slump/3222664.html
Senior managers have also taken voluntary pay cuts and there are plans to trim directors' fees as the conglomerate anticipates further cuts, the company said in a statement.
The "painful measures" are aimed at cushioning the impact of sluggish demand for drilling rigs as firms worldwide curtailed spending oil and gas exploration.
Keppel chief executive Loh Chin Hua said it had slashed its workforce at its offshore and marine business by "close to 8,000", or around 26 per cent, over the nine months to September.
"Much of the reduction has so far been through natural attrition," he said in announcing Keppel's third quarter to September earnings. "However, we will increasingly also look into early termination of contracts and selective retrenchment in Singapore, in line with the drop in workload."
Keppel said group net profit for the July-September period fell 38 per cent from the previous year to S$225 million (US$162 million) after net profit in its offshore and marine business plunged 93 per cent.
In the first nine months of the year, the group's year-on-year net profit was down 43 per cent to S$641 million, hit by a 69 per cent profit decline in the offshore business.
http://www.channelnewsasia.com/news...eppel-cuts-jobs-as-profits-slump/3222664.html
