Restructuring at FMC Technologies to Continue Following Layoffs
FMC Technologies Inc. confirmed to Rigzone it had laid off 1,000 workers from its worldwide operations during third quarter 2016, and expects further restructuring to continue through year’s end.
The company’s employee headcount now stands at 14,500 for this year’s third quarter, down from 15,500 in this year’s second quarter. The third quarter job cuts included 175 layoffs at FMC’s corporate headquarters in Houston, Lisa Adams, head of corporate public relations and digital communications, told Rigzone.
The layoffs are not related to the company’s planned merger with Paris-based Technip, but intended to better position the company for when the industry turns around, Adams said. In May, the two oilfield service companies announced their plans to merge to cut costs to weather the oil price downturn.
The company reported Thursday third quarter 2016 earnings of $1.1 billion, down 29 percent from the same quarter in 2015, mainly due to lower activity across all its reporting segments. However, the company’s Subsea Technologies division achieved further improvement in segment operating margins, with third quarter results reaching the highest levels the company has recorded this year, said Doug Pferdehirt, president and CEO of FMC Technologies, in an Oct. 19 press statement.
“The strong performance results from solid project execution, combined with the benefits of our cost reduction actions that continued in the quarter,” said Pferdehirt in the statement.
The company received its second subsea multiphase boosting pump, for ENI’s Block 15/06 West Hub Development, during the quarter. The company expects that its small order intake will continue to improve and that large project orders will follow.
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- Restructuring at FMC Technologies to Continue Following Layoffs (Oct 20)