US Frac Sand Supplier Cuts 10% of Workforce

Frac sand supplier U.S. Silica Holdings, Inc. has cut 230 employees as it grapples with the current challenges in its energy markets.
The Katy, Texas-headquartered company made the announcement Friday.
The staffing reductions count for 10 percent of the company’s total workforce and includes corporate employees as well as the idling of mines in Utica, Illinois and Tyler, Texas. It will also impact Crane County in Texas, Sparta, Wisconsin and Festus, Missouri.
The job cuts in operations will reduce staffed oil and gas capacity by 7 million tons.
The company anticipates annual SG&A savings from the staff reductions as well as other cost reductions to total $20 million.
Severance costs related to the workforce reductions will be $1.7 million and incurred by U.S. Silica in the fourth quarter of 2019.
“The difficult decisions announced today are an important element of our plan to protect margins and generate free cash flow in an increasingly competitive oil and gas completions market,” CEO Bryan Shinn said in a company statement. “The actions taken realign our operational footprint and cost structure to more efficiently serve energy customers while simultaneously supporting the expected growth of our Industrials & Specialty Products segment.”
To contact the author, email Valerie.Jones@Rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- What Bad Habits Should Oil and Gas Jobseekers Avoid?
- Top Headlines: Valaris Employee Reported Missing from Rig
- Big Oil Saw Record $199Bn Profits In 2022 But 2023 Will Be Different
- Governor Issues Disaster Declaration for Southeast Texas
- USA Drops 3 Gulf of Mexico Rigs
- Exxon Building Largest Renewable Diesel Plant In Canada
- World Still Waiting to See What China Reopening Means
- Biden To Support ConocoPhillips Alaska Oil Project, Defying Greens
- EU Considers Capping Russian Fuel Prices at $100
- USA Oil and Gas Employs Almost 1 Million in 2022
- Valaris Employee Reported Missing from Rig
- Louisiana, Texas To Gain Thousands of Energy Jobs At Start of 2023
- Is the USA Shale Boom Over?
- Gasoline and Diesel Prices Expected to Fall
- Higher Oil Prices Have Not Led to More Exploration
- Shell Finds Gas In Pensacola High-Impact Well Off UK
- Talos Makes Two Commercial Discoveries In Gulf Of Mexico
- Iran Oil Gushes Into Global Market
- Will Oil Hit $100 Per Barrel in 2023?
- Eni, Chevron Make Significant Gas Discovery Off Egypt