Worley cuts jobs following business contraction

Image: Worley

Worley has reduced its workforce by 5 per cent this year as a result of contraction in the business amid economic uncertainties.

The reduction of 3000 workers stemmed from customers’ delays, deferrals and cancellations, particularly in field-based work and lower margin construction related activities.

This is partially offset by acceleration in other parts of the business, according to Worley.

The engineering services provider is set to further optimise staffing levels and costs as it considers to freeze salaries, reduce hours and encourage early retirement on a case by case basis.

The company also cut its chargeable hours by 2 per cent over last month.

Worley plans to continue adjusting its operational and cost structures and postpone all non-essential capital expenditure.

“We are responding with agility to the rapidly changing environment,” Worley chief executive Chris Ashton said.

“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.”

Worley’s revenue is derived from customers’ operating expenditures, which tend to be longer term contracts (45 per cent); the chemicals sector (37 per cent); and customers’ upstream and midstream oil and gas capital expenditures (20 per cent).

“The economic outlook and our customers’ responses are difficult to predict yet … Worley is preparing for a range of scenarios,” the company stated.

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