Evanton-based Isleburn Ltd announced that it would be reducing its workforce. The company intends to slash up to 200 jobs in the coming months. This comes as bad news for oil and gas contractors in the UK.
The Easter Ross region is already affected by the slump in the energy industry, and now this announcement comes as a blow to the local community and the oil and gas contractors. Isleburn is a major employer in this region. It is part of the Global Energy Group and has facilities in Nigg, Invergordon and Evanton.
Isleburn said that the decision to reduce the workforce was due to the recent decline in the oil and gas sector. Manual and blue collar employees in Ross-shire are the most affected. These employees were informed about the redundancies through a letter, and this has created turmoil among the local families working for Isleburn.
The company claims that the decision was taken due to the adverse results of its order book, which has been affected due to the slump in the oil and gas market. “It is with great regret we are having to take this action,” said a company spokesperson.
The spokesperson went on to expand that the company was successful in acquiring new business from key companies in the oil and gas sector, and this created many jobs in the local community and Scotland. However, the company was hit by the massive downturn in the North Sea oil and gas industry, and is therefore seeking new customers beyond the North Sea, in areas where the cost of operating is significantly lower.
The company’s planned redundancies will reduce its cost base, and the workforce reduction will stay in place until the demand returns.
The company has 767 full-time employees, and the redundancies will see a reduction in the workforce in the company’s facilities across the northern Highlands.