BW Offshore has announced that it will make redundant some 35% of its permanent onshore employees across global locations as part of an extensive cost reduction programme.

The company told the Oslo Stock Exchange on Friday that the retrenchment process is expected to be concluded within the first quarter of 2016, and it will reduce its annual cost base by around $30m.

“Macro conditions for the offshore industry have continued to deteriorate over the past months and BW Offshore expects reduction in industry capital expenditure to continue,” the company said in a statement.

“The FPSO industry is equally affected and the situation does not seem likely to change in the short term,” it said.

BW Offshore added that a provision will be booked in the first quarter accounts to cover costs related to the reductions.

In 2015, the FPSO operator was hit by a loss of $216.3m after taking a fourth quarter impairment of $186.9m to write down to zero the net book value of its goodwill in the oil and gas sector.