Edinburgh-headquartered Capricorn Energy is set to slash its UK operations and is "reviewing its UK office space requirements" as part of its strategic review following its abandoned merger with Israeli gas group NewMed.
The company is entering redundancy consultations with approximately 120 of its 238 global employees. Once finished, Capricorn said its expects to have less than 40 people working in the UK.
As a result of the reduced headcount, the company is reviewing its office space requirements "to align to the expected size of the renewed organisation".
The move comes in the wake of a shareholder revolt that derailed the previous executive team's proposed deal with NewMed, triggering the departure of seven members of its board of directors. The new board has decided to focus on the company's operations in Egypt.
READ MORE: Capricorn: New boardroom broom sweeps away Israeli merger ambitions
"In the earliest days of the strategic review, the board concluded Capricorn's near-term strategic focus should be primarily on Egypt, and to farm down, monetise or exit exploration concessions outside Egypt," Capricorn said in a statement released this afternoon.
"As a result, Capricorn will need a substantially reduced headcount in the UK and will therefore shortly enter a redundancy consultation process which is expected to result in an organisation of less than 40 people in the UK. Capricorn anticipates the majority of these changes will be made in the coming two months."
The company added that further details will be available on April 27 when it is due to give an update on its wider strategic review.
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