Energy services provider Worley has reduced its workforce by 3,000 people in response to the current economic circumstances, the company said in a press release on April 28.
The company’s headcount was 56,000 as of March 31, 2020, down 5% from 59,000 as reported on January 31, 2020. The majority of the reduction was in field-based work specifically lower margin construction-related activities.
Staff utilization remains above target although lower than in the second half of calendar year 2019, according to the company. Chargeable hours for professional services have reduced by 2% in March 2020 when compared with February 2020.
The company noted that it has entered this period in a stable financial position with a total liquidity of $1.36 billion as of December 31, 2019. In March 2020, Worley said credit approval had been received to extend approximately $480 million of working capital for an additional 12 months.
Worley has since worked with its banking partners and has secured an additional $465 million in 12 month facilities. These new facilities have been established on similar terms as existing facilities, further strengthening Worley’s liquidity position. Including these new facilities, Worley has renewed existing and established new facilities of a combined $945 million over the past month.
“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,” Chris Ashton, Worley CEO, said.
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