Australia-based engineering services provider Worley has cut 3,000 jobs and secured an extra $465m in loans after collapsing oil prices and the coronavirus pandemic dented its project pipeline.
Worley said it laid off 5% of its employees, dropping its number of staff to 56,000 as of 31 March.
The latest announcement comes after the Australian firm said it was in a redundancy consultation process with its North Sea team but did not reveal how many jobs are at risk.
According to the company, most of the layoffs impacted workers who are engaged in lower margin construction related activities.
Worley has also put a freeze on salaries and postponed all non-essential capital expenditure (capex) in a bid to keep costs under control during the pandemic.
Worley CEO Chris Ashton said: “We are responding with agility to the rapidly changing environment. 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.
“I am proud of our people as they demonstrate resilience and harness their ingenuity and expertise supporting customers, colleagues and communities.”
About 20% of Worley’s revenue is currently tied to the oil and gas sector, compared to 65% previously.
The company said close to 45% of its revenue is currently derived from services provided to existing operations under longer term, multi-year contracts.
In March 2018, WorleyParsons (now Worley) has secured two project management consultancy (PMC) contracts in the Middle East.