Tenaris Joins Archer, Marathon in Cost Cuts, Layoffs
Tenaris announced Monday that it will temporarily suspend operations at its welded tube mills in Conroe, Texas, which result in the layoff of approximately 230 employees. The layoffs will take effect April 24.
The decision was made based on record levels of traded imports of OCTG (oil country tubular goods) from South Korea and the sharp decline in the price of oil and consequential reduction in drilling activity.
Likewise, oil services firm Archer Ltd. also expects to cut its costs by at least 10 percent through an 11 percent head count reduction, as it adapts to a weaker market in the North Sea and the U.S.
Archer’s announcement comes just days after Marathon Oil Corp. reported plans to cut 350 to 400 jobs.
Following a 20 percent capital, investment and exploration budget decrease for 2015, Houston-based Marathon also plans to cut jobs.
Marathon Oil announced the workforce reduction after an earnings conference call Feb. 19. The company attributes the significant drop in commodity prices as the reason for the layoffs.
“The significant drop in commodity prices is impacting the industry overall and Marathon Oil is taking steps necessary to ensure we remain competitive,” a spokesperson from Marathon Oil said in an email statement to Rigzone. “These reductions will be focused largely on U.S. payroll employees and will be weighted to above-the-field and support services personnel. Our goal is to conclude this effort as quickly as possible to limit the period where our employees are uncertain of their standing and to minimize disruption.”
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