CGG layoffs, on the record
Every job cut, severance charge and restructuring CGG reported in its annual reports, 2015 to 2017, quoted from the filings.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 20-F for 2015 | 7,277 | December 31, 2015 |
| 20-F for 2016 | 5,766 permanent employees | December 31, 2016 |
Job cuts, severance and restructuring
Our summaryCompany reduced its permanent workforce from 8,540 to 7,277, mainly due to fleet reduction and the oil and gas downturn.
Word for word“Our workforce of permanent employees decreased from 8,540 at December 31, 2014 to 7,277 at December 31, 2015.” 20-F for 2015
Our summaryCompany announced further steps of its Transformation Plan including a restructuring plan reducing positions worldwide and across the Group.
Word for word“This restructuring plan includes the reduction of 930 positions worldwide and across the Group, redundancy costs and further maintenance costs of cold stacked vessels.” 20-F for 2015
Our summaryCompany recorded restructuring costs under its Transformation Plan, mainly for redundancies, facility exit costs and cold-stacked vessels.
Word for word“(iii) restructuring costs related to our Transformation Plan for US$208 million mainly related to redundancies, facility exit costs and costs related to cold-stacked vessels, net of reversal of provisions and (iv) a US$27 million net gain related to disposals of assets.” 20-F for 2015
Our summaryCompany stated it would continue its adaptation plan in 2016, reducing the operated marine fleet and implementing an additional cost and personnel reduction plan.
Word for word“Therefore, the adaptation plan will be continued in 2016, leading to further reduction in the operated fleet, in operational fixed costs and industrial investments, with a focus on the following priorities: • Reducing our fleet to five 3D high capacity vessels beginning of 2016; • Assigning two thirds of our restructured fleet to our own multi-client operations; • Implementing an additional cost and personnel reduction plan.” 20-F for 2015
Our summaryCompany recorded restructuring charges and fixed asset impairments related to fleet reduction.
Word for word“Restructuring charges and fixed assets impairments related to fleet reduction amounted to US$251 million in 2014 and US$288 million in 2015.” 20-F for 2015
Our summaryPermanent workforce fell due to fleet reduction, the restructuring plan and the oil and gas downturn.
Word for word“Our workforce of permanent employees decreased from 7,277 as of December 31, 2015 to 5,766 as of December 31, 2016.” 20-F for 2016
Our summaryCompany recorded restructuring costs under its Transformation Plan, mainly vessel charter costs and redundancies, net of provision reversals.
Word for word“Other expenses amounted to US$183 million in 2016, including mainly (i) US$97 million impairment of multi-client surveys mainly related to our US offshore library (ii) US$31 million impairment of vessels related to our Transformation Plan and (iii) US$54 million restructuring costs being mainly vessel chart costs and redundancies, net of reversal of provisions.” 20-F for 2016
Our summaryFleet reductions generated restructuring charges and fixed asset impairments.
Word for word“Restructuring charges and fixed assets impairments related to fleet reduction amounted to US$288 million in 2015 and US$34 million in 2016.” 20-F for 2016
Our summaryCompany began discussions with stakeholders on a financial restructuring and a French ad hoc representative was appointed.
Word for word“The President of the Commercial Court of Paris ( Tribunal de Commerce de Paris ) on February 27, 2017 appointed an ‘ad hoc representative’ ( Mandataire ad hoc ) in order to facilitate the discussions in a manner intended to respect the best interests of all of our stakeholders.” 20-F for 2016
Our summaryCompany restructured the ownership of its marine fleet and the related Nordic credit facility obligations, including charter cost reductions.
Word for word“In April 2017, we entered into agreements with Eidesvik Shipping AS (“Eidesvik”), the lenders under our Nordic credit facility and the lenders under the credit facilities of Eidesvik Seismic Vessels AS (“ESV”) and Oceanic Seismic Vessels AS (“OSV”) in order to change the ownership structure of our marine fleet and restructure the related financial obligations under the Nordic credit facility related thereto (the “Marine Fleet Restructuring”).” 20-F for 2016
Our summaryThe company completed its Transformation Plan, which cut its workforce by 50%, cut monthly marine costs by close to 80%, and cut overhead costs by close to 60%.
Word for word“The implementation of this operational restructuring plan, which was completed at the end of 2017, resulted in, in particular, (i) the reshaping of the fleet of vessels operated by us, (ii) the repositioning of our business in high value-added market segments, such as the GGR or Equipment division, (iii) a reduction of our workforce by 50%, (iv) an enhanced cost control through rigorous cash management, which resulted in a reduction by close to 80% of our monthly marine costs and a reduction by close to 60% of overhead costs, and (v) a reduction of our annual investments by close to 60%.” 20-F for 2017
Our summaryThe company reported 2017 restructuring costs, including redundancy and facilities exit costs, within its Transformation Plan charges.
Word for word“Other expenses amounted to US$179 million in 2017, including mainly US$186 million of restructuring costs net of gain on sales of assets relating to our Transformation Plan (not including the acceleration of historical issuing fees amortization linked to our financial restructuring for US$23 million) of which (i) US$51 million loss relating to our new ownership set up for our seismic fleet (ii) US$12 million relating to the renegotiation of a charter agreement, (iii) US$102 million relating to financial restructuring fees and (iv) US$21 million relating to other restructuring costs, being mainly redundancy and facilities exit costs net of reversal of provisions.” 20-F for 2017
Our summaryThe company undertook not to carry out any redundancy plan in France until the end of 2019 unless the Paris Commercial Court authorizes it.
Word for word“— confirmed that pursuant to the draft Safeguard Plan and in light of the underlying market assumptions of its Business Plan, no social or industrial restructuring is contemplated in France, and that the Transformation Plan, which implementation was completed by the end of 2016, had already led to the reduction of the Group’s workforce by half compared to the end of 2013; more precisely, unless otherwise authorized by the Commercial Court of Paris, the Company undertook to refrain from any redundancy plan in France until December 31, 2019 and to maintain, and to do what is necessary for the French law subsidiaries it controls within the meaning of article L.233-3 of the French Commercial Code to maintain the decision centers currently located in France, including the Company’s registered office, until December 31, 2022; and” 20-F for 2017
Our summaryThe company recorded 2015 restructuring costs under its Transformation Plan, mainly redundancies and facility exit costs.
Word for word“Other expenses amounted to US$1,188 million in 2015, including mainly (i) US$804 million of impairment of goodwill in Marine Contractual Data Acquisition and GGR as a consequence of the reduction of the fleet and the revision of our financial forecasts (ii) US$207 million of impairment of vessels and related equipment and other intangible assets (including US$42 million of impairment of multi-client surveys); (iii) restructuring costs related to our Transformation Plan for US$208 million mainly related to redundancies, facility exit costs and costs related to cold-stacked vessels, net of reversal of provisions and (iv) a US$27 million net gain related to disposals of assets.” 20-F for 2017
CGG has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from CGG’s annual reports (20-F for 2017, 20-F for 2016, 20-F for 2015) and the financial data it files with the SEC, as of 2018-03-29. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.