Harbour Energy has revealed plans to axe around 250 jobs in Scotland as the firm laid the blame on “punitive” government measures.
The oil and gas firm said the cuts – about a quarter of its workforce in Aberdeen – come as part of a review of its UK operations.
The job losses are on top of 350 roles that were cut by the firm in 2023.
Scott Barr, managing director of Harbour Energy’s UK business, said: “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.”
The Aberdeen and Grampian Chamber of Commerce (AGCC) branded the latest cuts a “devastating blow” for impacted workers and their families, and called on the Government to “end the windfall tax now”.
Harbour Energy has been openly opposed to the windfall tax, or the Energy Profits Levy, which was brought in by the previous Conservative government and then extended after Labour came to power last year.
The company’s recent financial results showed it made pre-tax profits of 1.2 billion US dollars (£898 million) in 2024, but this was decimated by what it claims was an 108% effective tax rate, leaving it with post-tax losses of 93 million US dollars (£69.6 million).
Stephen Flynn, Scottish National Party (SNP) Westminster Leader and MP for Aberdeen South, raised the job cuts in Prime Minister’s Questions and accused Sir Keir Starmer of “destroying jobs in Scotland”.
He said: “That’s 250 jobs in my constituency gone in the blink of his eye.
“And do you know who they blame Mr Speaker – they blame the policies of the Labour Party.”
The Prime Minister responded, saying “nobody wants to see job losses”, but said the SNP “will raise anything to distract” from its “disastrous record”.
On the Harbour Energy cuts, Russell Borthwick, chief executive at the Aberdeen and Grampian Chamber of Commerce, said: “This is a devastating blow for the 250 plus families directly affected – and 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.
“The UK currently has a crippling 78% tax on North Sea oil and gas, all while importing record levels of foreign energy – with higher emissions – tax free.”
He added: “Enough is enough. End the windfall tax now.”
