Layoffs Poised in Energy Sector
Dropping oil prices have offered relief to individual wallets across the U.S., but these decreases bring a host of troubles for the oil industry, particularly in areas throughout Texas. As the price of barrels sinks internationally by the day, thousands of workers in the oil and gas industry are facing layoffs.
Baker Hughes, one of the biggest employers in Texas and largest oil companies in the U.S. has provided potential numbers, including a loss of 7,000 jobs in 2015. Rig operations have slowed across the country, with a decrease of 14% in just two months. Predictions cite that many of the layoffs will hit field workers as rig activity continues to slow.
In addition to price concerns, the long-discussed merger of Halliburton with Baker Hughes may bring another host of layoffs for the oil industry, but these will be focused more on mid-level jobs within the companies. The two giants contribute thousands of jobs across Texas, particularly in the Houston area as the second and third largest oil companies, and the state may face difficulties as surges of workers find themselves laid off.
These numbers follow on the heels of announcements from Schlumberger Ltd., the world’s largest oil drilling company, that the company will be cutting the jobs of 9,000 workers due to sliding oil prices.
In just the last handful of months, oil prices have crashed about 60%, and Texas workers are likely to feel the impact of the industry’s troubles soon.
Companies already cutting jobs include:
- Baker Hughes
- Ensign Energy Services
- Hercules Offshore
- U.S. Steel
Wage Claim Lawyers Can Help You During Layoffs
Although many of these companies operate outside of Texas, the impact of dropping oil prices will undoubtedly hit workers across the country. Although experts continue to debate the severity of the slump energy companies are facing, it’s undeniable that many workers will find themselves out of work. With the jobs of thousands of field workers at stake, one can only watch and wait out the impact of this economic development.