25 August 2015, News Wires – Energy conglomerate GE said it will cut 262 more jobs at its Lufkin oil unit in Texas and close a foundry as it grapples with the plunge in global oil prices.
GE earlier this year said it planned to eliminate some 575 jobs from Lufkin, bringing the total cuts to more than 800.
“This was a tough decision to make, but one we must make for the long-term health of the business,” GE said in a statement on Monday.
The decision came amid “increasingly challenging market conditions”, GE said.
GE bought oilfield pump maker Lufkin Industries for about $3.3 billion in 2013, one of several deals the company has struck to boost its presence in oil and gas.
The jobs will be eliminated across two sites in Angelina County, Texas.
GE, which reported about 44,000 jobs in total in its oil and gas segment in its 2014 annual report, has said it plans to remove $600 million in costs from its oil and gas division this year.
The steep drop in crude prices has put pressure on GE’s oil and gas investments, as customers of its equipment and services slash capital expenditure budgets. GE has forecast operating profit for the segment to fall by between 5% to 10% this year.