A thousand to be jobless because of low oil prices

Danish energy company Maersk said it would cut about 12 percent of its workforce as part of an effort to slash operating costs by 20 percent by the end of 2016.

"We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015 and ensure we focus where we can see adequate returns from our most robust projects," Maersk Oil Chief Executive Officer Jakob Thomasen said in a statement.

Maersk announced it would cut about 1,250 positions as part of a move to reduce overall operations costs. Low crude oil prices, down about 45 percent from this time last year, have robbed oil and gas companies of the cash they need to invest in exploration and production activity.

Oil field services company Weatherford, one of the largest companies of its kind, said last week it trimmed capital spending plans for full-year 2015 by $100 million to $650 million, more than 50 percent lower than last year. Already, the company said it planned to cut staff by about 11,000, but would now increase that to 14,000 and close five of its seven manufacturing and service facilities.

Maersk said the low price of crude oil has brought in profound and material changes to the upstream, or exploration and production, side of the energy sector. Joining a chorus of voices, Thomasen said the slump was expected to continue at least into 2016.

"We must remain cost-focused to grow in this market," he said. "These are difficult decisions for any business, and my immediate concern is for the welfare of those affected directly by today's news."