In light of market conditions and to optimize SBM Offshore’s cost base, capacity requirements have been reviewed with the objective of creating a productive environment for performing teams and maintaining its core competencies and technological edge. SBM Offshore is in the process of releasing about 600 contractor staff and an equal number of permanent staff, totaling about 1,200 positions worldwide, over the period 2014 and 2015, according to a company release.

Workforce reduction plans will vary by country, based on local legal requirements and in close consultation with work councils and employee representatives, as appropriate. The restructuring is expected to generate annualized savings of about $40 million relating to company employees only. Total redundancy costs of $25 million are expected, of which $17 million will be recorded in 2014 and a further $8 million in 2015.

SBM Offshore also announces the relocation of its corporate headquarters to Amsterdam effective from third-quarter 2015, the release said. The international orientation, presence of many other stakeholders in the Netherlands, the company’s Euronext listing and the proximity to the industry and Schiphol airport are expected to provide many advantages to SBM Offshore as a global player in the industry. About 100 people are expected to work with the management board from new offices in the Amsterdam region, the release said. Monaco remains a strategic location for technology, engineering and operations.

CEO of SBM Offshore Bruno Chabas said, “Although we regret losing some of our colleagues, we believe these steps are necessary to deliver value to our stakeholders and drive profitable growth over time.”