Archer to let more workers go
- Business & Finance
Archer, an international oilfield services provider, will lay off more workers due to drop in activity in the U.S. and Latin America.
The company in the first quarter of the year reduced its headcount by approximately 1,200 positions or 13.6% of its total workforce. It also made adjustments to compensation, bonus and benefits plans “in order to bring them in line with the current economic climate.”
However, those measures seem to not be enough, as the global supplier of drilling and well services has today revealed it will make further cuts. The company is responding to activity reductions around the world as the oil companies have or are in the process of reducing drilling activities.
“We have worked with many of our suppliers and subcontractors in order to reduce our cost base. With additional activity reductions in Latin America and a larger than anticipated drop in activity in the United States, we have decided to make a further reduction in our workforce of 300 to 400 employees, leading to a total reduction of about 17% compared to the headcount at the end of December 2014,” Archer has said in its 1Q 2015 report.
The company’s 1Q 2015 net loss deepened to $14.9 million, compared to a net loss of $8.5 million in the first quarter of last year. Revenues were $501.6 million, down from $504.8 million a year ago.
Offshore Energy Today Staff