Oil and gas energy company Subsea 7 has revealed plans to cut 1,200 jobs across its global workforce by 2017.

It is understood up to 430 jobs will be slashed in the UK, with the majority based in Aberdeen.

The Group said the decision to reduce its 9,200 worldwide workforce had been made "in view of continued difficult business and economic conditions in the oil and gas market".

In addition, up to five vessels are scheduled to leave the company's fleet.

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As a result of cost reduction and resizing measures, the Group said it expects to deliver over £200 million in annual cost savings.

Jean Cahuzac, Chief Executive Officer, said: "Our new organisational 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.

"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."

(LM/MH)