- Associated Press - Friday, January 30, 2015

TULSA, Okla. (AP) - Oil drilling rig maker and operator Helmerich & Payne Inc. this week announced plans to lay off 2,000 employees.

In a conference call with analysts Thursday, CEO John Lindsay said that the layoffs are due to the decrease in crude oil prices, which has led to reduced rig use, the Tulsa World (https://bit.ly/1tFMl31 ) reported.

The planned cuts equal about 17 percent of the company’s total workforce, which includes 500 employees in the Tulsa area. The company did not say how many Tulsa-based employees would be impacted, but did say that most of the jobs affected would be in the oil fields.

“This is without question the worst part of the downturn,” Lindsay said. He said oil prices at six-year lows have affected drilling activity, and the company expects that to negatively impact results for the rest of the 2015.

The company will reduce the number of drilling rigs it produces from four to two per month.

The decision comes soon after Helmerich & Payne’s earnings report revealed a net income of $203 million for the three months ending Dec.31.

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Information from: Tulsa World, https://www.tulsaworld.com


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