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Oil engineer Wood Group to cut hundreds of jobs

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London-listed oil sector engineer Wood Group is cutting hundreds of jobs almost a year after takeover negotiations failed.

Sky News understands the company is expected to announce next week, alongside its annual results, the launch of a new cost-cutting program which sources say will affect white-collar workers around the world.

One insider suggested around 200 positions would be cut, a tiny proportion of its 36,000 workforce.

Wood Group employs around 6,500 people in the UK, the majority of whom are based in Aberdeen.

The company on Wednesday denied suggestions that Ken Gilmartin, its chief executive, was considering a move to the United States.

A number of other senior Wood Group executives are said to have made the United States their permanent base, reflecting its significant presence there.

Last year, Apollo Global Management, the buyout firm, abandoned a takeover valuing it at £2.2 billion, including debt, after making four separate bids for it.

Shares in the company have fallen by a quarter in the last 12 months, giving it a market capitalization of just over £1 billion.

They are now trading at around a third less than the 240 pence per share contained in Apollo’s final proposal.

A spokesperson for Wood Group declined to comment.

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