Image courtesy of Dresser- Rand.

Engine and turbine maker Dresser-Rand Group will cut 8 percent of its workforce in the coming weeks in response to low oil prices.

The Houston-based company said last Friday that it will reduce its 8,100 employee workforce in an effort to cut costs.

The lay offs are expected to start “within the next several” weeks, Dresser-Rand said.

Further details about the headcount reduction plan have not been disclosed yet.

The plan is expected to cost about $50 million in severance and non-cash charges tied to the restructuring or disposal of unspecified assets.

The company added that its “flexible” manufacturing unit will help it realize savings from fixed costs this year.

“While current market conditions may generate discomfort in the industry, we believe the company is structurally well placed with its flexible manufacturing model to implement an efficient and a relatively non-disruptive restructuring plan,” CEO Vincent Volpe Jr. said.

In September Germany-based Siemens agreed to purchase the company for $7.6 billion including debt.

Dresser-Rand said the layoffs are not tied to the merger.

Siemens expects the purchase to close by summer 2015.

Dresser-Rand booked a fourth quarter profit of $46.2 million, or 6 cents per share, up from $32.8 million earned during the same period in 2013.

The company said that despite the oil price rout it expects sales to stay relatively stable during 2015.


Leave a Reply