Royal Boskalis Westminster N.V. (Boskalis) has completed the previously announced study into the costs of its head office organization. The deteriorated market circumstances and the expected long spell of low energy prices were the reason for the study. Based on the study Boskalis will target total cost savings of EUR 30-35 million, resulting in the loss of around 230 jobs. This restructuring is part of the Corporate Business Plan 2017-2019 which Boskalis presented at the start of the year and will be implemented in the next 18 months.
The reason for the study is that Boskalis is impacted by the negative market developments, mainly as a result of the low oil price. Initial steps to respond to this were taken last year with the announcement of a fleet rationalization and cost reduction program. A significant part of the fleet rationalization program was already implemented in 2016 and an impairment charge was taken on the offshore fleet and goodwill.
As a result of this measure around 230 employees will be made redundant at the head office in Papendrecht. The reduction will be absorbed through attrition and redeployment where possible, but compulsory redundancies cannot be ruled out. Boskalis has requested the formal opinion of the Works Council with regard to this intended decision.
Photo credit: Royal Boskalis
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