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.
Kværner, a Norway-based engineering and construction company in the petroleum sector, is to cut between 250 and 500 jobs in Norway by the end of 2015. Most of the job cuts will be made in Oslo and Stord.
At the shipyard at Stord, 10 employees are temporarily dismissed and more will be made redundant as soon as the company finishes a new oil platform in April.
As the company has lost major contracts, restructuring is inevitable, according to senior management. The size of the job cuts is yet to be determined, but it is clear that the company will reduce its staff by at least 250 employees. Not all the cuts will be direct dismissals, as some will be implemented through natural wastage. The company also hopes to secure new contracts, to keep the dismissals to a minimum. Temporary agency workers and hired consultants will be the first to go.
As a result of the low oil price falling investments in the petroleum sector, Kværners construction of oil platform decks is threatened. The management is working with union representatives to conduct the restructuring process in the best way possible. As a result of the difficult market situation, Kværner is working to reduce costs in all parts of the company. Offshoring larger parts of its production is one strategy which is being considered. The company already has suppliers in China and Poland. If production there is increased, the company may choose to downsize its staff in Norway further.
Eurofound (2015), Kværner, Internal restructuring in Norway, factsheet number 79246, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/79246.