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Dutch oil and gas major SBM Offshore said it was in the process of laying off approximately 600 contractor staff and an equal number of permanent staff, totalling approximately 1,200 positions worldwide, over the period 2014 and 2015.

The decision has been triggered by a desire to cut back on company’s expanses in light of harsh market conditions.

SBM said that workforce reduction plans will vary by country, based on local legal requirements and in close consultation with work councils and employee representatives.

The restructuring plans are expected to generate annualized savings of approximately USD40 million relating to company employees only, SBM Offshore said.

Bruno Chabas, CEO of SBM Offshore, said: “Although we regret losing some of our colleagues, we believe these steps are necessary to deliver value to our stakeholders and drive profitable growth over time.“

The company expected total redundancy costs to reach USD25 million, of which USD17 million will be recorded in 2014 and a further USD8 million in 2015.

SBM Offshore also announced the relocation of its corporate headquarters to Amsterdam effective from the third quarter of 2015.