WorleyParsons to cut 2000 jobs

Global engineering firm WorleyParsons is slashing 2000 jobs and has booked a $125 million charge for fiscal 2015.

WorleyParsons today announced expected non-recurring redundancy and onerous lease charges and general project divisions led to the $125 million hit.

The company said it was feeling the effects of a sustained weakness in commodity prices, resulting in a deterioration in workload since February.

“This is particularly the case in North America and has impacted chargeability and margins,” the company said.

Taking into account the impact of these changes and provisions the company now expects statutory earnings for the second half to be approximately 50 per cent of the first half of the 2015 financial year.

In the six months to December 31, WorleyParsons posted a net profit of $104.3 million, a 7 per cent decline on the $112.1m profit in the previous corresponding period.

The company said it had been forced to adjust its business to market conditions, leading to the cut of 2000 jobs worldwide.

This comes after the company cut 4000 jobs last year to take its global workforce to 35,600.

WorleyParsons said the cost cutting would save it between $75 million and $100 million in the 2016 financial year.

WorleyParsons shares have dropped by 9.3 per cent since the announcement to trade at $10.38.

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