London, December 02, 2025
Harbour Energy, the UK’s largest oil and gas producer, announced plans to cut approximately 100 offshore jobs in the North Sea as part of a strategic review of its UK operations. The decision, scheduled for completion by the first quarter of 2026, is attributed to ongoing pressure from the UK’s energy profits levy and challenging market conditions.
Job Cuts Details and Timing
The workforce reduction will affect offshore employees in the North Sea, with the company emphasizing the need to maintain competitiveness amid an increasingly difficult operating environment. Harbour Energy has initiated a consultation process with employees and stakeholders that is expected to conclude in early 2026 before finalizing any job eliminations.
Impact of Energy Profits Levy and Market Pressures
Scott Barr, Managing Director of Harbour Energy, highlighted the dual challenges of lower commodity prices and an “uncompetitive tax regime” due to the UK government’s energy profits levy—commonly known as the windfall tax—as key factors driving the restructuring. The company underscored that the decision followed the Labour government’s recent announcement to retain the windfall tax in its Budget, intensifying financial strains.
Since the introduction of the energy profits levy in 2022, Harbour Energy has reportedly cut around 700 UK jobs, underscoring the significant operational adjustments prompted by fiscal and market pressures.
Broader Industry Implications
Harbour Energy’s planned layoffs mirror a broader trend in the global oil and gas sector, where major companies are undertaking workforce reductions amid sustained industry headwinds. Persistently low oil and gas prices, rising supply costs, and sector consolidation have compelled firms such as Chevron and ExxonMobil to announce substantial layoffs, signaling ongoing volatility in the energy markets.
These workforce changes reflect sector-wide efforts to stabilize profitability and adapt to evolving geopolitical, regulatory, and economic landscapes that are redefining the future of oil and gas production.
The coming months will be critical as Harbour Energy and other operators assess strategies to navigate these challenges while balancing operational efficiency and workforce sustainability in a highly uncertain energy market.