Posted: Friday, February 20, 2015 4:00 am | Updated: 11:24 am, Fri Feb 20, 2015.
By Richard Yeakley ryeakley@news-journal.com
KILGORE — Baker Hughes Inc.’s layoffs are hitting home with the closure of a Kilgore plant and layoff of its entire workforce.
In a letter received Wednesday by the city of Kilgore, the oilfield services company indicated it has ceased operations at 2500 Texas 135 on Feb. 2, putting 58 employees out of work.
“I guess everyone in Kilgore has been holding their breath, expecting or afraid of something like this happening,” Mayor Ronnie Spradlin said Thursday. “There have been a few smaller ones that have not been as significant, but this is the first notable one.”
The reductions come as hundreds of U.S. drilling rigs have gone idle amid billions in oil-company spending cuts, a reaction to crude oil prices that have been halved since June. Baker Hughes and other oilfield service companies have announced intentions to cut more than 40,000 jobs, and producers have cut more than 5,000 so far.
Baker Hughes’ notification to the city indicated the layoffs are expected to be permanent.
Halliburton also has said it is planning to ax 5,000 to 6,500 jobs.
The impact on East Texas, where the Houston company employs nearly 500 people at operations in Kilgore and Longview, remained unclear Thursday.
http://www.news-journal.com/news/local/baker-hughes-layoffs-hit-home-in-kilgore/article_9d17c0d7-1be0-5730-b59d-02d74af9805c.html
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