Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Reinertsen, civil engineering, construction, and petroleum industry has scaled down its activity in offshore petroleum installation, dismissing 130 employees in Norway.
The dismissals are based on seniority. The company has reportedly been working closely with the unions on the issue. This is the first major restructuring in the company, and Reinertsen’s management has indicated that the company might rehire some staff in 2016. At the same time, further cuts are not ruled out at this point. The dismissed employees were mainly operators working on oil platforms.
The restructuring is a result of a lack of new contracts with the petroleum companies, following the declining oil price and falling investment activity. Reinertsen is one of several companies downsizing in response to the reduced oil price and rate of investment in the North Sea. About 10,000 jobs were cut in the Norwegian petroleum sector over the past year. Statistics Norway has estimated that as much as 30,000 jobs directly related to petroleum investment activity may be cut before 2018.
Update, March 2015: In addition to the 130 employees who were dismissed, 200 engineers were temporarily laid off in Bergen and Trondheim in 2014. Another 50 engineers were temporarily laid off in January 2015. In March, Reinertsen decided to temporarily lay off an additional 145 employees in engineering and processing. In total, Reinertsen's staff has been reduced by more than 500. Reinertsen stated that they intend to put the temporarily laid off employees back to work, if new projects can be acquired.
Eurofound (2014), Reinertsen, Internal restructuring in Norway, factsheet number 78758, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/78758.