UK-based oil and gas producer Harbour Energy has revealed plans to axe around 250 jobs in Aberdeen due to the government’s “punitive” measures.
According to the oil and gas firm, cutting around a quarter of its Aberdeen workforce comes as part of a review of its UK operations. The 250 jobs are on top of the 350 jobs cut by the firm in 2023.
Harbour Energy has been a huge opponent of the previous Conservative government’s measures, such as the Energy Profits Levy, otherwise known as the windfall tax, which was extended after the Labour Party came to power last year.
The company’s recent financial results for 2024 revealed that the company made $1.2bn (£898m) in pre-tax profits. However, after Harbour was hit with what it claimed was an effective 108% tax rate, it was left with post-tax losses of $93m (£69.6m).
“Harbour is launching a review of its UK operations, which we expect to result in a reduction of around 250 onshore roles in our Aberdeen-based business unit. The review is unfortunately necessary to align staffing levels with lower levels of investment, due mainly to the government’s ongoing punitive fiscal position and a challenging regulatory environment,” said Scott Barr, managing director of Harbour Energy’s UK business.
The Aberdeen and Grampian Chamber of Commerce (AGCC) stated that the cuts were a “devastating blow” to the workers, and called on the government to “end the windfall tax now”.
“I fear it is just the tip of the iceberg, unless the Government changes course. Labour’s long-term ambitions are laudable, but in the absence of a proper industrial strategy, we are left with policies which are destroying a world-class British industry,” stated Russell Borthwick, chief executive at the AGCC.
UK’s largest offshore trade union, Unite, also criticised the government’s policy for the latest loss of jobs. Unite said it is “crystal clear” that government policy and the current regulatory framework are contributing to companies slashing jobs.
“Unite fears that the scale of the job losses in the years to come will run into the tens of thousands unless the UK government changes direction and produces a concrete plan with real jobs for the transition of North Sea workers,” said Unite general secretary Sharon Graham.
“Governments need to realise that for any just transition to work, it needs to be a managed transition that puts the workers at its centre. The current political ideology of prematurely ending the oil and gas industry without any thought to the impact it has on workers is unforgivable,” added Unite’s lead officer for the offshore sector John Boland.
