Offshore engineering company Subsea 7 has announced plans to cut 2,500 jobs globally by early 2016, citing tough business and economic conditions in the oil and gas market.

The company is looking to implement cost reduction programmes, including downsizing the fleet and workforce, in addition to restructuring corporate organisation.

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Under the programme, Subsea 7 will cut down the global fleet, comprising a total of 39 vessels, by up to 11.

"Reducing employment is not a decision we take lightly, but one that is necessary in today’s difficult oil and gas environment."

The reduction will be based on a combination of non-renewal of charter vessels, and either disposal or stacking of owned vessels.

A further five vessels are under construction, according to the company.

The company will take up the fleet reshaping process in a phased manner over the coming 12 months.

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Subsea 7 chief executive officer Jean Cahuzac said: "These cost reduction plans will allow us not only to adapt to present market challenges, but also to maintain our competitiveness and the long-term viability of our business.

"This will enable us to emerge stronger once the downturn ends. Reducing employment is not a decision we take lightly, but one that is necessary in today’s difficult oil and gas environment."

During the restructuring process, the company proposes to invest in key enabling technologies in a bid to provide its clients with cost-effective solutions.

As part of the process, the company plans to continue to consult with employees and employee representatives on a local basis.

It has already started the process in Norway and the UK.