Spirit Energy to cut 100 jobs in Aberdeen amid UK restructure

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  • Up to 100 jobs at risk: Spirit Energy plans to cut around 100 roles in Aberdeen, reducing its workforce from roughly 150 to about 50 as part of a major restructuring.
  • Business split into two entities: The company will separate into a Barrow-based operating business and an Aberdeen-based development arm focused on carbon storage.
  • Aberdeen office under threat: Industry sources indicate the current Aberdeen office could close, with staff potentially relocating to a smaller site.

Spirit Energy has announced plans to cut around 100 jobs in Aberdeen as part of a sweeping reorganisation of its UK business, in a move that underscores the accelerating transition of North Sea operators away from traditional oil and gas activity.

The Centrica-backed company said it intends to split its UK operations into two separate entities: a Barrow-in-Furness-based operating company that will manage the Morecambe Hub gas fields in the East Irish Sea, and an Aberdeen-based development company focused on progressing the Morecambe Net Zero (MNZ) carbon capture and storage project towards a final investment decision.

The restructuring is expected to significantly reduce Spirit Energy’s footprint in Aberdeen, with the workforce projected to fall from around 150 employees to roughly 50 if the proposals proceed. Most of the affected roles are understood to be office-based, reflecting the shift away from administrative and legacy upstream functions.

Industry sources suggest the company’s current office at the IQ building in Aberdeen could close, with remaining staff potentially relocating to a smaller site, although Spirit has not formally confirmed those plans. A 45-day consultation period has been launched, with any redundancies expected to take effect later this year.

Spirit Energy said the changes are necessary to align its organisational structure with its evolving portfolio, particularly ahead of the expected completion of its Greater Markham Area asset sale to Serica Energy in the second half of 2026. The company added that it is committed to supporting affected employees throughout the consultation process.

The announcement highlights a broader shift underway across the UK North Sea, where operators are increasingly repositioning their businesses around lower-carbon opportunities as mature oil and gas assets decline. Spirit’s focus on the Morecambe Net Zero project reflects growing industry interest in carbon capture and storage (CCS) as a core pillar of the energy transition.

However, the move represents a significant blow to Aberdeen, long regarded as the UK’s energy capital. While the city has been actively repositioning itself as a hub for energy transition technologies, job losses among established operators continue to raise concerns about the pace and fairness of that transition.

The restructuring also reflects a wider industry trend: operational activity is increasingly concentrated in fewer, more efficient hubs, while corporate functions are streamlined or relocated. In Spirit’s case, the shift towards Barrow underscores the growing importance of the East Irish Sea in the company’s remaining production portfolio.

For policymakers, the development reinforces a familiar tension. While the transition to low-carbon energy is accelerating, the near-term impact on jobs and regional economies – particularly in legacy oil and gas centres – remains acute. The key question is whether emerging sectors such as CCS can scale quickly enough to absorb displaced workers and sustain local supply chains.

For Aberdeen, that answer is still far from clear.

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