LIVING in Aberdeen, Wood Group chief executive Robin Watson sees the effects of the oil and gas downturn – some of it delivered by his own business – first hand.

“I think the city still feels flat,” he says. “Our kids go to school here and we see fathers picking up their kids because they’re out of work. And the traffic is certainly quieter. I think we’re all living the same life in terms of the generally suppressed nature of the city.”

This backdrop makes initiatives like Opportunities North East (ONE) particularly important, he adds. Set up by former Wood Group chairman Sir Ian Wood, ONE aims to spend £50 million over the next five years bringing new jobs and investment to the region. A key focus will be strengthening diversity in sectors including food and drink, life sciences and tourism.

Wood Group is going through its own ‘rebalancing’, with deep job cuts in response to the steepest decline in activity in its 40-year history. At the same time, a raft of contract wins and extensions are creating and safeguarding jobs. Some ‘strategic acquisitions’ are also broadening the group’s service offering in areas including petrochemicals, software and consultancy.

“We’ve got balance geographically, balance from a sectoral perspective and balance in the services we provide,” Mr Watson says. With the ebb and flow of contract work, Wood Group says it’s hard to predict where the headcount might be in six or 12 months’ time. In such a manpower-heavy business – and with the unpredictability of the oil price – the waters may be choppy for some time yet.