Frank’s International to lay off 400-600, company says

Frank’s International announced Tuesday it would reduce its workforce of 4,500 employees by 400 to 600.

The company said the decision was based on the downturn in oil prices which has been sustained for more than eight months. Oil sold at a high mark of $114 a barrel last June; prices have sunk to below $50 since.

On Tuesday, prices settled at $47.60 a barrel on the New York Mercantile Exchange, down 4.3 percent on the month and 11 percent in the quarter. Brent, the global benchmark dropped 2.1 percent to $55.11 a barrel.

The layoffs will come in areas where the company’s business has suffered most, Frank’s said in a statement issued in Houston. Around the U.S., companies involved in shale drilling and shallow water drilling have sustained the greatest financial setbacks, although company spokesman Josh Grodin declined late Tuesday to say in which specific areas the layoffs would come.

Grodin said the company would discuss specific actions, savings and other cost savings during its first quarter earnings call. That call had not been scheduled Tuesday, but will likely come in late April.

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