Image courtesy of McDermott International/Flickr.

McDermott International revealed Tuesday it has cut about 1,723 jobs since last October.

The job cuts included 1,200 craft labor positions and 48 corporate posts at the company’s Houston office, Fuel Fix said.

The Houston-based engineering firm noted in its first quarter results that it also cut 475 jobs through the end of March that will result in an expected 2015 cash savings of $27.6 million.

The craft labor position lay offs primarily affected employees at the company’s fabrication yards.

McDermott reported a first quarter 2015 net loss of $14.5 million, or $0.06 per fully diluted share including restructuring charges, compared to the $46.5 million net loss booked in the same quarter last year.

“Revenues for the first quarter 2015 were affected by weather and third-party performance delays on the company’s INPEX project, as well as customer initiated changes on Middle East brownfield projects that impacted the timing of vessel mobilization,” the company said.

The company’s operating income was $6.6 million for the first quarter 2015 and included $10.4 million of restructuring expenses, a big improvement over last year’s first quarter operating loss of $38.2 million.

Restructuring charges for the quarter were $10.4 million, in line with the company’s previous guidance of $25 million to $35 million for the full year 2015.

McDermott said it is still on track to achieve expected annual cash savings of $50 million in 2015, before restructuring charges.


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