Three Energy Companies Warn of Layoffs in Texas
Published By : 04 Feb 2015 | Published By : QYRESEARCH
Texas oil and energy industry workers are about to lose their jobs in the oil and gas division in the U.S. - including the 330 industry workers at General Electric Co.
This is because the U.S. crude prices languished below $50 per barrel.
The GE Oil and Gas and other two energy companies wrote letters to the Texas Workforce Commission warning them that the state regulators have plans to slack around 720 employees in the state.
GE plans to cut around 45% of its staff in Lufkin, Texas situated around 120 miles northeast of Houston.
The layoffs are planned to begin in late March that will restructure the drive to reduce the costs, said the company. The decision has not been taken in a light manner but for the long-term health of the business.
GE’s main engine of growth has been oil and gas. Today, the energy producers are spending extremely less in the oil patch due to low crude prices. The cost savings are expected to blunt the impact, added the analysts at Moody’s Investors Service in a note to their clients.
In addition, Lariat Services a subsidiary of Sandridge Energy Inc. will also layoff around 265 employees in the West Texas.
The decisions are difficult to make in order to meet the current market and challenges.
Also, Trican Well Services will cut down around 125 employees and shut down their operations.
Since the energy companies are engaged in drilling fewer energy wells job cuts in the oil patch are necessary. The energy industry is also seeking ways to save ample of money for this year. The industry is sloping down more than 50% since June. Now it has settled at $49.57 a barrel.