Layoffs in the US energy industry have sharply increased for a second-straight month in July, with employers announcing 45,346 job cuts: a 19 percent increase from June. This was defined in a report by outplacement firm Challenger, Gray & Christmas.
ConocoPhillips was a huge contributor to the layoffs, who announced 1,000 cuts, a figure equal to 6% of the entire company’s workforce. This is a shock, considering ConcoPhillips is the world’s largest independent oil and gas exploration and production company.
“Oil prices continue to be depressed. There are some signs that it’s stabilizing. Not only oil prices, but rig development seems to be stabilizing,” said Challenger CEO, John A. Challenger.
“So maybe we’re starting to see the bottom there in energy, but those big oil companies – ConocoPhillips made a big cut this month, as well as the equipment companies like Halliburton – continue to cut jobs as they react to the real amount of business that they’ve got to handle.”
According to analysts, the amount of active US drilling rigs will carry on falling for at least another three months.
“We’re going to see further cuts in Texas employment,” said Michael Plante, a senior research economist at the Federal Reserve Bank of Dallas. “We’ve seen a general slowdown in oil producing areas out in West Texas and in the Eagle Ford. Those places are really dependent on this activity.”
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