(The Daily Advertiser) – Frank’s International has announced it is reducing its workforce by an undisclosed number of employees, including some in the Lafayette area.
Company spokeswoman Caroline Mansur said in an emailed statement Wednesday morning that job losses were due to market changes that include a decline in oil prices of more than 70 percent since June 2014.
The fall in prices from more than $100 a barrel to as low as $26 a barrel early this year has led to a decline in drilling. Oil was selling for around $50 a barrel Wednesday, following a rebound over the last quarter and after news that the Organization of Petroleum Exporting Countries would curb its output, ostensibly to reduce the oil glut on the global market.
“The company is aligning its global workforce and production levels with market demands to ensure that Frank’s remains strong and is positioned well for the future,” the issued statement said. “Frank’s continues to monitor market conditions and is committed to safely providing its customers with the equipment and services required to allow them to access their most challenging oil and gas reserves.”
The company did not file a Worker Adjustment and Retraining Notification Act in connection with the layoffs, according to a spokesman for the Louisiana Workforce Commission. A WARN notice is required for mass layoffs, but Frank’s said this layoff did not “meet the requirements to trigger the WARN Act.”
The layoffs will be at least the fourth for Frank’s since the oil industry downturn began. In the past, the company has not issued any statements until the layoff process was complete.
Frank’s, founded in Lafayette in 1938, operates in 60 countries and employs some 4,000 workers. The company laid off 400-600 employees in spring 2015 and about 100 in autumn 2015. The company did disclose the number of layoffs made last spring.