Oil equipment builder Technip says it plans to cut about 6,000 jobs, roughly 16 percent of its workforce, as it restructures its business to cope with the oil industry downturn.
The Paris-based firm, which has its main U.S. offices in Houston, said Monday the move will save it $919 million over the next two and a half years, with the bulk of those savings coming in 2016. It said it will make the cuts “in anticipation of an even more challenging environment in oil and gas.”
Brent, the international crude benchmark, fell $4.55 to $57.52 a barrel on Monday on the ICE Futures Europe. U.S. crude sank $3.51 to $53.45 a barrel on the New York Mercantile Exchange.
The 13-month oil slump has prompted international oil producers to delay or cancel drilling projects and hit companies like Technip directly as orders for equipment fell earlier in the year.