Worley Axes 3,000 Jobs
Australia-based engineering firm Worley has axed 3,000 jobs and won an extra $465 million loan after market conditions and the global pandemic collapsed project workflow. The number of lost jobs equates to 5% of its workforce, reducing its staff to approximately 56,000 as of March.
The update is on the heels of the company undergoing a redundancy consultation process with its North Sea group. Most of the layoffs affected employees who were engaged in lower margin field-based construction work, according to a notice sent to the Australian Securities Exchange.
In addition to the layoffs, the firm has frozen salaries and hit pause on all non-essential expenditures to conserve cash.
Worley’s acquisitions of AFW UK in 2017 and Jacobs ECR in 2019 helped the company to become more diversified across the energy, chemicals and natural resource sectors. Currently only 20% of Worley’s revenues are linked to upstream and midstream activities in oil and gas; previously, it was 65%. The company also indicated that about 45% of its revenue comes from longer term, multi-year contracts.
“We are responding with agility to the rapidly changing environment,” Worley CEO Chris Ashton said in a written statement. “We are ensuring the safety and wellbeing of our people, we have increased our liquidity position and we continue to review and adjust the business operationally.”
At year-end 2019, the company reported total liquidity of $1.36 billion.
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