By Jonathan Davies

Oil services firm Wood Group has cut 5,000 jobs this year after falling oil prices hit profits.

The Aberdeen-based company cut around 1,000 jobs in the UK, another 1,000 in Asia and 3,000 in the US. In February, Wood Group announced that it would cut jobs in order to reduce costs.

At the end of last year, the firm employed around 40,000 people.

Wood Group also announced profits of $160.2 million (£102.9m) for the first six months of the year, down from $233.3m in the same period last year. Revenues were down 20% to $3.1bn.

"Conditions in oil and gas markets remain very challenging," said Wood Group's chief executive, Bob Keiller.

"With little prospect of short term improvement in market conditions, we will focus on remaining competitive and protecting our capability, working with clients to reduce their overall costs, increase efficiency and safely improve performance."

Oil prices have fallen by more than 50% over the past year. But despite the fall in profits in the first half of the year, Wood Group still expects to hit its profit target for the year, adding that cost cutting would save around $80m this year.