Well-known Norwegian company announces changes. Job cuts are on the way
Aker BP has announced significant job cuts. The company’s CEO, Karl Johnny Hersvik, said that the changes will be linked both to the company’s reorganization and the automation of processes. The exact number of people affected by the cuts has not yet been determined.
Aker BP is involved in major projects, including Yggdrasil, Valhall PWP-Fenris and Johan Sverdrup.
Fot. Equinor/Laila Sømme
Oil company Aker BP is preparing a new organizational model. Hersvik informed employees about the planned changes during a Friday meeting, according to the Norwegian business daily Dagens Næringsliv (DN). The CEO described the scale of the cuts as significant.
At the end of last year, Aker BP employed around 3,100 people. The company is currently moving from a period of major investments, which are due to be completed next year, to a model involving a greater share of smaller subsea projects. The changes will also affect the company’s management.
At the end of last year, Aker BP employed around 3,100 people. The company is currently moving from a period of major investments, which are due to be completed next year, to a model involving a greater share of smaller subsea projects. The changes will also affect the company’s management.
The company is changing its organization. A new model is being created
Aker BP announced changes to its management from the beginning of the new year. Karl Johnny Hersvik will remain the company’s CEO. By the end of the year, the new management is to develop a revised operating model aimed at bringing projects online faster and at lower cost. Part of the management team will focus on the value chain.
The second group will be responsible for strategy and support functions. Hersvik points out that operating conditions on the Norwegian continental shelf are changing. According to him, the future model requires the company to organize itself differently than before. The reorganization is intended to prepare Aker BP for these changes.
The second group will be responsible for strategy and support functions. Hersvik points out that operating conditions on the Norwegian continental shelf are changing. According to him, the future model requires the company to organize itself differently than before. The reorganization is intended to prepare Aker BP for these changes.
Aker BP is involved, among other things, in the Johan Sverdrup infrastructure project.Photo: Equinor, Ole Jørgen Bratland
Automation will reduce employment. The company wants to increase productivity
The job cuts are expected to result not only from the reorganization. Hersvik also pointed to the automation of processes carried out within the company. Aker BP has not yet specified how many positions will be affected by the changes. However, the CEO stressed that the scale of the cuts will be noticeable.
During the ONS trade fair in Stavanger, Hersvik had previously spoken about the need for a significant increase in productivity on the Norwegian continental shelf. In his view, companies will have to deliver greater output while using fewer resources. As one example, he cited the Kjøttkake project, which is to be launched quickly. This direction corresponds to the planned shift toward smaller subsea investments.
During the ONS trade fair in Stavanger, Hersvik had previously spoken about the need for a significant increase in productivity on the Norwegian continental shelf. In his view, companies will have to deliver greater output while using fewer resources. As one example, he cited the Kjøttkake project, which is to be launched quickly. This direction corresponds to the planned shift toward smaller subsea investments.
Aker BP and its partners are currently completing several major projects, including Yggdrasil, Valhall PWP-Fenris and the third phase of Johan Sverdrup. At the same time, the largest companies operating on the Norwegian continental shelf expect fewer large, standalone investments involving new platforms and production vessels in the future. Smaller subsea projects are expected to play a greater role.
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