The Weir Group, plc cut one-fifth of its oil and gas workforce in the U.S. during third quarter.
The U.K.-based company, which makes pumps and valves for mining and energy industries, stated its oil and gas division had been impacted by “a progressive slowdown in market activity in North America.”
Oil and gas orders were down 32 percent year-on-year.
“North America customers were reluctant to invest in additional horsepower or new technologies, instead preferring to reserve cash,” Weir Group’s chief executive Jon Stanton, said during a call discussing the company’s 3Q earnings. “Given these market conditions, we undertook a £30 million cost reduction program to right-size our business in North America.”
The cost reduction program included a workforce reduction of 20 percent, or 450 jobs, as well as overhead cuts and introduction of mandatory furloughs.
Stanton stated the company’s oil and gas division was “moderately profitable” in third quarter and a sequential decline is expected in fourth quarter.
“We are continuing to keep our cost base under active review,” he said.