Hercules Offshore lays off 60 employees at its Houston headquarters

Offshore drilling services firm Hercules Offshore, which filed its second bankruptcy in less than a year, laid off 60 employees at its Houston headquarters.

The company is expected to undertake further measures whilst undergoing restructuring.

As part of the bankruptcy process, Hercules anticipates a complete shutdown of its facilities.

This has resulted in the permanent terminations of 60 employees at the company’s Houston headquarters, according to data sent to the Texas Workforce Commission (TWC).

Source: RigZone

Shell announces job cuts in 2016

Royal Dutch Shell Plc plans to cut 2,200 more jobs to take its tally of job cuts to 12,500 in 2016.

According to Paul Goodfellow, Shell’s vice president for the U.K. and Ireland, at least 5,000 jobs would be cut in 2016 to tackle lower crude oil prices and as a result of its acquisition of BG Group Plc earlier this year.

Shell’s adjusted net income for 1Q 2016 declined 58% to $1.6bn following the collapse in oil prices. The company acquired BG Group for $54bn in 2016 to get access to oil and natural gas reserves from Australia to Brazil. The acquisition increased Shell’s debt to $70bn as on 31 March 2016.

Source: Bloomberg

BNP Paribas to cut 233 investment banking jobs in London

According to sources, BNP Paribas plans on laying off about 233 employees from its investment banking division in London.

A 35-member securitization desk will also be halved, as part of the planned job cuts.

As per sources, 100 employees would leave within weeks and the rest, by the end of the year.

The France-based lender had previously announced 675 job cuts from its investment banking division in Paris.

Source: Bloomberg

 

Intel to cut 12,000 jobs amid slower PC sales and lower earnings

Chipmaker Intel Corp. plans to cut its workforce by 11% amid slower PC sales and a missed earnings forecast. About 12,000 employees would be affected by the decision.

Company CEO Brian Krzainich stated that PC sales, which accounts for half of Intel’s revenues, had slowed down, leading to the company missing analyst’s estimates for its 1Q16 results.

The company wants to shift focus onto higher-margin products such as chips for data centres and internet-connected devices.

In the first quarter, net income rose 2.7% to $2.05bn, or 42 cents a share, while sales climbed 7.2% to $13.7bn. On average, analysts had projected earnings of 37 cents and revenue of $13.8 billion.

Revenues for the second-quarter was estimated by Intel to be about $13.5bn. Average analyst estimate revenues of $14.2bn, according to Bloomberg. Intel’s gross margin for 2Q16, is forecasted at about 61%.

Source: Bloomberg

Fiat Chrysler cuts 1,300 workers at its Michigan plant

Automobile manufacturer Fiat Chrysler Automobiles announced on Wednesday that it was laying off about 1,300 workers indefinitely at its Sterling Heights, Michigan plant that makes the slow-selling midsize Chrysler 200 sedan. The layoffs will be effective 5 July 2016.

Sales of Chrysler 200 in the U.S. were down 63% y/y in the first quarter of 2016, as the company de-emphasized sales of the model which had been often sold to rental agencies.

Previously in January 2016, Fiat Chrysler’s Chief Executive Sergio Marchionne had stated that the company would cease making the midsize sedan as well as the compact Dodge Dart, unless a partner could be found to keep the production going.

Source: Reuters

Boeing to cut 8,000 jobs

According to sources, aircraft manufacturing firm Boeing Co plans to cut about 8,000 jobs in 2016 in the commercial airplane division in an attempt to slash costs by $1bn and remain competitive with rival Airbus.

The company plans to cut 4,000 jobs in the commercial airplane division by mid-2016 and about 550 jobs from its unit conducting flight and lab tests.

Although Boeing has outpaced Airbus in terms of 70 new orders for Feb-16 as compared to Airbus’s 18, the company aims to continue operating with a lesser workforce.

Source:  Reuters

 

 

Lonmin sacks 5,000 workers as part of restructuring

South African-focused platinum producer Lonmin’s restructuring saw more than 5,000 layoffs, a reaction to depressed commodity prices.

Some confusion prevailed over the process after the worker’s union Association of Mineworkers and Construction Union (AMCU) stated on Wednesday that only around 75 Lonmin jobs would be lost.

Lonmin stated on 3 March 2016 that most of the workers had left on a voluntary basis.

Investor’s immediate reaction was positive as the company’s share price in Johannesburg rose more than 20% and was trading almost 16% higher in London as clarity around the restructuring emerged. However, the stock could be in the over-bought zone, said analysts tracking the share price.

Source: Reuters