Vallourec to Reduce North American Workforce
BOULOGNE-BILLANCOURT, France – In a statement released Monday, Vallourec announced its plan to reduce its workforce in North America in response to the “unforeseen, sudden and significant drop of activity confirmed by its oil and gas customers.”
The reduction affects more than a third, or more than 900, of its total workforce and contractor positions across all plants and support functions in North America, the company stated. In the coming weeks, the company will implement the reduction following all internal and external procedures. Vallourec employs nearly 19,000 in more than 20 countries.
No information was given on how many workers would be affected at plants in the Youngstown area. As of this time last year, the company employed more than 750 at its three Youngstown units: Vallourec Star, VAM USA and Vallourec USA Corp.
“The world and the oil and gas industry are living through extraordinary times, particularly in the U.S.,” stated Edouard Guinotte, chairman of the management board for Vallourec. “The decisions announced today are necessary in a quickly deteriorating environment but preserve our ability to serve our customers efficiently. After reviewing possible alternatives, they were not made lightly and I, together with Vallourec Executive Committee will ensure they will be implemented in the full respect of Vallourec values.”
In light of the coronavirus pandemic, Vallourec is “taking the appropriate measures to adjust working hours to activity levels, reduce fixed costs and investments as well as implementing strict safety measures to protect all employees” in all countries, according to the release.
Copyright 2020 The Business Journal, Youngstown, Ohio.