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Norwegian multi-client geoscience data provider TGS-NOPEC Geophysical Company (TGS) decided to cut its global workforce by 130 people, corresponding to around 16 percent of the total workforce.

Due to the continued weak market conditions, the company took the step as a measure of implementing global cost reduction and efficiency plan, and said that the move will reduce operating expenses by approximately USD 13 million per annum from the beginning of 2016.

A restructuring cost of USD 8 million will be charged to the accounts for Q4 2015.

TGS has also chosen to adopt more prudent assumptions with regards to the length of the downturn in the evaluation of the multi-client library. These assumptions are influenced by recent statements made by large oil companies regarding reductions in E&P budgets not only for 2016 but also for 2017 and beyond. The revised assumptions will lead to total impairments for selected surveys of approximately USD 150 million to be recognized in the Q4 2015 accounts.

“Although the TGS library continues to perform well compared to the industry, we have chosen to take a cautious view when evaluating the net book values. The cost of shooting the same seismic today is dramatically lower than two to three years ago and this has of course played a role in our assessment,” says Robert Hobbs, CEO of TGS.