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Wood Group To Slash Roughly 200 Jobs In Cost-Cutting

By Nithya Bose in Business News, posted March 24, 2024

London-based oil engineering firm Wood Group is set to cut hundreds of jobs as part of a new cost-efficiency initiative.

The move comes nearly a year after failed takeover discussions with Apollo Global Management.

The job reductions, expected to be announced with the company's full-year results next week, will primarily impact white-collar positions across its global operations.

Although the cuts represent a small fraction of Wood Group's 36,000 employees, around 200 roles would be eliminated.

The majority of Wood Group's UK-based employees are located in Aberdeen, out of a total of 6,500 in the country.

The company has confirmed that CEO Ken Gilmartin has no plans to relocate to the US.

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Wood Group maintains a major presence in the US and several senior executives are permanently based there.

Following Apollo's withdrawal from a £2.2bn takeover bid, Wood Group's shares have dropped by a quarter over the past year, reducing its market valuation to just over £1 billion.

The shares now stand roughly one-third below Apollo's final offer of 240p per share.

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