We’ve recently reported on the number of jobs lost in Texas and have found the trend to continue, especially with three large oil companies in the state: Cameron International, Trelleborg Offshore, and National Oilwell Varco.
Cameron International has announced it plans to cut jobs at the Northwest Houston facility as the oil tool manufacturer foresees a rough oil market ahead. Approximately 75 jobs will be lost from the plant beginning next year in order to implement cost cutting measures to ensure the company survives the extended slump in oil prices coupled with the drop in exploration and drilling activities. Despite a loss of $500 million in revenue from last quarter, Cameron still plans to offer severance packages and job placement assistance to laid off employees. It had been able to absorb the losses through budgeting and improvement operations but expressed concern over current and future market conditions.
In a statement to the Texas Workforce Commission, Cameron said, “Due to the current declining business conditions, the company has decided to substantially reduce its operations at the Brittmoore facility.” This comes in the midst of rumors the company will be bought next year by Schlumberger.
In a similar letter to the TWC, Trelleborg is planning to cut about 200 out of 416 full and part time jobs in Houston. The Sweden based company employs over 20,000 employees worldwide and began notifying its employees in Houston earlier this month. Laid off employees will receive a packet of information from Workforce Solutions said Trelleborg.
This comes after an announcement that another company in the area, National Oilwell Varco, will be closing a support facility in West Texas. The cut is estimated to result in a 120 job loss and is set to take place between January 15 and 29th. For the third quarter of 2015, the company reported earned net income of $155 million and an adjusted earnings of $232 million, while analysts had been hoping for a revenue of $3.47 billion.
“The sharp decline in oil prices and activity since late last year has impacted each of our segments, and will drive activity lower in the fourth quarter,” said company CEO Clay Williams. “In the meantime, with limited visibility into the timing of a recovery, we remain focused on managing costs and improving performance, while continuing to develop technologies that help our customers to improve their returns in a lower commodity price world.”
Lilia Fabry is the owner of MPP Freelance, a writing and web design firm in Houston, TX.