Houston-based oil field services company FMC Technologies, Inc. plans to implement further workforce reductions this year due to a challenging North America land market.
FMC reported 2Q revenue of $1.7 billion, down 15 percent from the prior-year quarter, due mostly to the continued decline in the North American land market and its significant impact on the company’s surface technologies segment revenue.
FMC announced plans to cut 2,000 employees in February and on a 2Q earnings conference call Wednesday, FMC executive vice president and chief financial officer Maryann Seaman said further reductions were expected. She said the company incurred restructuring costs of $5.4 million in 2Q.
“Although our activity remains high, we were able to reduce further our subsea headcount during the quarter in areas where our internal standardization efforts have delivered efficiency improvements,” Seaman said on the call. “In the coming quarters, workforce reductions will be more reflective of the anticipated decrease in future year activity due to delayed subsea project inbound.
Seaman said the company anticipates an additional $15 to $20 million of restructuring changes in the second half of the year.
FMC chairman and CEO John Gremp said the North America land market will remain challenged and it’s unlikely to see much recovery before 2016.
A lot of the planned headcount reductions have already been made, about 15 percent in surface technology this year, said Seaman, and FMC will continue to see the benefit of that in 2H of 2015.
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