A third of the UK’s oil and gas firms are planning further job cuts this year as a result of a slump in prices, a new survey has revealed.
The industry report, from the Bank of Scotland, found 43% of companies are planning further cost-cutting measures because of the downturn, with 32% of businesses planning to cut jobs.
Unsurprisingly, companies in Scotland have been particularly hurt by the slump in oil prices, with almost six in 10 saying that their business has been “severely” hit, compared to a national average of four in 10.
Of the 141 companies questioned for the report, nearly six in 10 have had to introduce efficiency measures or cut costs over the last 12 months while for more than half, this has involved making redundancies.
The troubling findings come just weeks ahead of a scheduled employment report from Oil and Gas UK, which last year found that 65,000 oil workers had lost their jobs in just over a year.
Stuart White, of Bank of Scotland, said: ” With oil prices currently hovering around the 50-dollar (£34) mark there is hope that prices have bottomed out and have begun to slowly and modestly recover.
“Many businesses however, undoubtedly face more difficult decisions on cost savings, jobs and investment.
“While the blow from depressed oil prices has been severe for many businesses and individuals impacted by job losses, the sector is proving itself to be among one of the most resilient industries in the UK.”
Jackie Baillie, Scottish Labour’s economy spokeswoman, said: “These figures underline the devastating impact the oil crisis has had on workers in the North East and right across the supply chain.
“Scotland’s oil and gas industry can have a bright future if proper steps are taken to identify and protect assets, that is why Labour called for the creation of a new public body to do just that.
“The reality is the SNP ignored the oil jobs crisis for months because it was politically embarrassing for them. We need to see much more regular reporting of the impact of the changing oil price on jobs and the economy. “