FMC Technologies Axes 2000 Jobs
Tough times in the oil industry have also started affecting the subsea sector as the oil service company FMC Technologies is reportedly reducing its company-wide headcount by 10 percent.
The Houston-based subsea specialist, which roughly employs 20,100 people in 17 countries, is next in line to axe jobs, following the recent announcements by the world’s four largest oil field service firms, Schlumberger, Baker Hughes, Halliburton and Weatherford International.
FMC reported Tuesday its profits fell 5 percent in the fourth quarter as it took a $24.9 million charge related to its U.S. benefit pension plans and saw a $25.5 million foreign currency loss.
In attempt to reduce costs in the weak oil market, FMC Chairman, President and CEO John Gremp said Tuesday during the company’s fourth quarter 2014 and full-year 2014 earnings call that the company will cut nearly 2000 jobs, and that most of the 10% company-wide job cuts will come from North America where rapid declines are occurring in this short cycle. He emphasized that staffing reductions will be just one facet of the company’s plans to address the downturn.
For the year, the company reported profit of $699.9 million, or $2.95 per share, compared to $501.4. million, or $2.10 per share. Revenue was reported as $7.94 billion.
However, Gremp acknowledged the uncertainty in the North American land market, saying that the company will focus on delivering a step change in improving deepwater project returns. The Subsea Technologies backlog covers $5.8 billion of the overall company’s backlog of $6.6 billion.
Earlier in January, Subsea world News reported, the company decided to slash jobs in Norway. FMC Technologies’ Ågotnes base is set to shed up to 120 jobs. There will also be staff reductions at FMC businesses in Kristiansund and Floro.
Subsea World News Staff
