Norwegian offshore engineering, construction and services provider Subsea 7 is planning to cut around 1,200 jobs by early 2017, and reduce its fleet size globally.
The proposed cost reduction program is in response to tough business and economic conditions in the oil and gas market.
Subsea 7 plans to resize its global workforce to approximately 8,000 by early 2017 down from the current level of 9,200. It will cut five vessels from its active fleet by early 2017.
Subsea 7 CEO Jean Cahuzac said: "Our new organizational structure reflects our focus on commercial and long-term strategic priorities as we adapt to the present low levels of activity and drive more efficient ways of working with our clients.
"The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle."
Subsea 7 said it has commenced consultation about the redundancies with the employees in the UK and Norway.
The cost reduction and resizing measures, along with other cost savings programs started in 2016, are expected to result in annual savings of $350m for the company.
Cahuzac added: "We remain confident in the long-term future for deepwater oil and gas production.
"We are committed to retaining our core capabilities and developing our leading market position through a strategy focused on differentiation delivered by our people, assets and technology."
In May 2015, Subsea 7 announced its plan to cut around 2,500 jobs by early 2016, and reduce its fleet size globally.