Harbour Energy to Cut 250 Jobs in Aberdeen Due to Government Policies

UK-based oil and gas producer Harbour Energy has announced plans to eliminate approximately 250 jobs in Aberdeen, citing the government’s “punitive” measures as the primary reason for the workforce reduction.

The decision to cut a quarter of its Aberdeen workforce comes as part of a comprehensive review of its UK operations. This move follows the 350 jobs that were previously cut by the company in 2023.

Harbour Energy has been vocal in its opposition to the government’s policies, particularly the Energy Profits Levy, also known as the windfall tax, which was extended after the Labour Party assumed power last year.

In its financial results for 2024, Harbour Energy reported pre-tax profits of $1.2 billion (£898 million). However, the company faced significant challenges after being subjected to what it deemed an effective 108% tax rate, resulting in post-tax losses of $93 million (£69.6 million).

“Harbour is initiating a review of its UK operations, which is expected to lead to a reduction of approximately 250 onshore roles in our Aberdeen-based business unit. This review is unfortunately necessary to align staffing levels with decreased levels of investment, primarily due to the government’s ongoing punitive fiscal stance and a challenging regulatory environment,” said Scott Barr, managing director of Harbour Energy’s UK business.

The Aberdeen and Grampian Chamber of Commerce (AGCC) described the job cuts as a “devastating blow” to the affected workers and urged the government to “end the windfall tax immediately.”

“I fear this is just the beginning, unless the Government changes its course. Labour’s long-term goals are commendable, but without a proper industrial strategy, we are left with policies that are undermining a world-class British industry,” stated Russell Borthwick, chief executive at the AGCC.

Unite, the UK’s largest offshore trade union, also criticized the government’s policies for the recent job losses. The union emphasized that government policy and the current regulatory framework are contributing to companies slashing jobs.

“It is abundantly clear that government policy and the existing regulatory framework are driving companies to cut jobs. Unite is concerned that unless the UK government changes its direction and devises a concrete plan with tangible job opportunities for North Sea workers, the scale of job losses in the coming years could reach tens of thousands,” said Sharon Graham, general secretary of Unite.

“Governments must understand that for a just transition to succeed, it must be a well-managed transition that prioritizes the welfare of workers. The current political ideology of prematurely ending the oil and gas industry without considering the impact on workers is unacceptable,” added John Boland, Unite’s lead officer for the offshore sector.