Aberdeen-based Wood Group PSN (WGPSN) has announced it will reduce rates paid to its UK-based contractor workforce by around a third.

The oil services firm said its rates would be cut by an average of 9%.

More than 7,500 people work for WGPSN in the UK, including around 600 contractors.

James Crawford, MD of WGPSN in the UK and Africa said: "This is not a decision we have taken lightly, but we believe it is the right one to proactively meet the continuing cost and resourcing challenges affecting the UK North Sea oil and gas sector. Our focus and commitment remains on contributing to the industry's long-term sustainability.

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"This adjustment to the rates we pay our UK contractors ensures we continue to be competitive within the marketplace. We highly value our contractors and this measure will allow us to sustain our relationship with these talented people, whilst taking appropriate measures to improve efficiency and reduce cost for our customers."

(LM/MH)