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North-east to escape worst as Archer slashes 200 jobs

North-east to escape worst as Archer slashes 200 jobs

Oilfield service company Archer said yesterday it was to axe around 200 jobs across its global operations – including the UK – as part of a restructuring plan.

But it also said it was continuing to invest in Scotland, where it employs more than 1,000 people in the north-east and offshore.

The restructuring, covering job cuts, the “rationalisation” of offices and operational bases and the closure of loss-making businesses, was announced alongside results from the firm.

A spokeswoman for the company, which employs 8,150 people worldwide, said the job losses and office closures would be mainly in the US and Brazil.

She added: “Some corporate support functions may be affected elsewhere but with minimal impact.

“Aberdeen and UK operations remain strong and we are continuing to recruit here, particularly for our engineering and platform drilling divisions.

“The UK market is very strong and we will continue to invest in it.”

Oslo-listed Archer said the job cuts would mainly affect management and back-office roles.

Earlier this year, the firm said growing demand for its services meant it needed more than 220 new workers for its North Sea operations.

Its onshore workforce in the north-east is currently relocating from sites in Aberdeen and Echt to new premises at Blackburn, Aberdeenshire.

The 70,000 square-foot site in Blackburn Business Park features offices, a workshop and a warehouse.

Archer said restructuring was needed to accelerate margin improvements and adapt to a highly competitive North American land market.

The impact is expected to result in net charges of £7.3million-£9.2million in figures covering the final quarter of 2013 and first three months of 2014.

Third quarter results showed net losses of £14.8million, compared with losses of £208.8million a year ago. Revenue for the latest period totalled £319.8million, up from £317.7million previously.