US oilfield equipment and services firm Weatherford this morning confirmed plans to shut down its Aberdeen-based manufacturing facilities.
A spokeswoman for Weatherford said the company had entered into consultation with employees affected by the decision, which followed a “strategic review”.
The Houston-based spokeswoman did not say how many people would be impacted, but it is feared large numbers of workers could lose their jobs.
Suppliers of equipment and services to Weatherford would also miss out on orders.
Scottish Conservative energy spokesman and north-east MSP Alexander Burnett said: “Weatherford is a major employer in the north-east which is why it’s extremely concerning to hear of plans to shut its manufacturing facilities in Aberdeen.
“This is another illustration of the battering Aberdeen’s oil and gas sector is taking from low oil prices as well as the coronavirus pandemic.
“It’s a huge blow to the loyal workers who are based across the city in areas such as Dyce and Bridge of Don.
“The Scottish Government needs to work with the UK Government on the North Sea Transition Deal and match any funding commitment with support for local infrastructure, ports and skills.
“This will help give oil and gas businesses the lifeline they desperately require and help aid post-virus recovery in the sector.”