Partner Article

Wellstream cuts workforce

Wellstream, the Newcastle-based supplier of pipelines to the oil and gas industry, says it is cutting up to 90 jobs at its manufacturing base.

Despite expecting 2008 revenues to be up 38% at £370m, and profits to be up by 85% at £77m, the company is axing jobs among its 624-strong Tyneside workforce as it is now operating in a “much more difficult business environment.”

Chief executive Chris Braithwaite said: “We are having to be much more cautious in planning for future levels of activity and as a result we are looking for an improvement in operating costs.

“It is with deep regret that we are having to take these steps and it is our earnest wish that as a result of these actions we will achieve our cost reduction targets. This is not a decision we have come to lightly.”

A company spokesman said: “The proposals may result in up to 90 jobs being made redundant in Newcastle. Accordingly, the company today enters a 30-day consultation period with its employees.

“The proposals are part of a broader initiative to ensure that the business remains efficient and competitive. Wellstream is committed to keeping job losses at a minimum and will consider all available options to reduce its operating costs before implementing any redundancies.”

Wellstream is one of the region’s best-performing companies and saw its share price soar to over £14 on the back of rising oil prices last summer.

This was posted in Bdaily's Members' News section by Ruth Mitchell .

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