Leading Subsea Services Company Cuts 2% of Workforce

The Houston Chronicle reported today that FMC Technologies, Inc., the largest provider of subsea systems to the oil and gas industry, has eliminated nearly 200 jobs since 2008 and is mulling potentially further trimming its employee headcount, according to Chief Executive Officer Peter Kinnear.

The Houston-based subsea company commenced its global staff reduction of an employment base of about 10,000 and concluded its cuts in February, said Kinnear during an interview at the Howard Weil Energy Conference in New Orleans.

According to Baker Hughes' latest rig count for the U.S., land rigs are down 47% from August, which had the highest activity level last year. The lower rig count has driven oilfield service and equipment providers to reduce costs after the price of crude dropped almost $100 from July 2008, the Houston Chronicle noted.

Kinnear said that FMC will consider cutting more jobs if the rigs stay down for an extended period of time, reports the Chronicle.

"We make a couple product lines that are sensitive to drilling activities," Kinnear said. "We've adjusted our workforce accordingly."

"We're doing everything we can to try to be more efficient, more cost effective," he added.