Worley Parsons posts a loss and reveals thousands of jobs gone

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Worley Parsons, a global mining services company caught in the oil and gas industry downturn, has revealed for the first time the full extent of the jobs cut by the company.

The company has cut 11.7% of its work force, 4200 fewer people, over 12 months. “The further deterioration in our markets since May has resulted in us taking further action beyond those previously announced,” says CEO Andrew Wood.

Worley Parsons now employs 31,400 people out of 148 offices in 46 countries compared with 35,600 at the end of June 2014.

Here’s the company’s history of reducing headcount to match economic conditions:

The company announced a statutory loss after tax of $54.9 million, a 122% deterioration. Underlying net profit was $198.6 million, a drop of 24.6%. Revenue was down 1.8% to $7.227 billion.

The result included costs associated with redundancies and leases of $62.3 million.

“We have been taking action since 2013 to reshape the business to align it with market activity,” says Wood.

“These actions in financial year 2015 resulted in redundancy and onerous lease charges being recognised. When combined with increased competition and concessions negotiated with customers, this has led to a reduction in our margin.”

The company says it will be continuing to take costs out of the business.

A final dividend of 22 cents a share, down 57% from the previous period, was declared.

Worley parsons shares were up 3.8% to $7.94.

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