350 positions will be vacant before Christmas – E24

In a recent announcement on the Kvaerner and Aker Solutions websites, the two companies provide an update on the announced merger.

It appears there are now 350 positions left in the administration to be cut before the end of the year.

“Most of these will be in Norway”, write the companies and add that they will try to internally find other work tasks for those affected.

“It is too early to estimate a real reduction figure,” the company writes.

The cut is in line with the cost reduction and downsizing plan announced this summer.

It has not yet been clarified if there will be reductions or changes in the shipyards and facilities that will operate the “new” Aker Solutions, Kvaerner will inform E24.

I should save a thousand five hundred million

On July 17, it was announced that Aker Solutions would separate offshore wind and carbon capture into its own publicly listed companies: Aker Offshore Wind and Aker Carbon Capture, respectively.

In addition, Kvaerner would merge with what remains of Aker Solutions, just ten years after the separation of the two companies.

As part of the merger plan, a target was also put forward to reduce the new group’s annual cost level by 30 percent, or NOK 1.5 billion, compared to the 2019 level.

Part of the plan was a reduction in the total number of employees from around 18,800 to 15,000.

However, most of the downsizing started long before the merger, in part due to the crisis in the oil industry that came with the crown.

Companies also note that the top management pool has been reduced by 40 percent, from 17 to 10 positions.

Promises more details soon

When Aker Solutions submitted its quarterly report on October 28, the company did not issue any guidance (forecast) on future developments.

The company’s management said they will enter the market with updated forecasts and information on the newly merged company during November.

Kvaerner is scheduled to have its last trading day on Tuesday, November 10, while the “new” Aker Solutions will make its public debut on Wednesday, November 11.

– We operate in competitive markets. Our ability to sustain long-term development of our business depends on our success in maintaining good margins and a strong financial platform, CEO Kjetel Digre says in the report.

– This means that we must adapt to a significantly thinner organization, with fewer managers and less administration, and a higher proportion of employees who have roles related to the implementation of projects for clients, he continues.

The two companies recently released their latest quarterly reports before the merger. Read about them here: