Frank's International has announced a workforce reduction of approximately 400-600 employees in areas where the company is experiencing “the sharpest declines in activity levels.” The announcement came following a management team analysis for developing and implementing cost savings opportunities while continuing to focus on the company's strategic growth plan.
Frank's International said it has been impacted by the sudden and dramatic drop in energy prices and rig counts that have occurred over the last 7-8 months. The company will discuss the specific actions, savings, and other cost savings opportunities in the Q1 2015 earnings call.
Frank’s International, a global provider of engineered tubular services to the oil and gas industry, announced in mid-March plans to buy Lafayette, Louisiana-based Timco Services, an oil-tool rental company for approximately $95 million in cash. The sector for the oil industry's suppliers is in a period of consolidation due to lower crude oil prices that are prompting a slowdown in the drilling industry. The deal with Timco is expected to close in Q2 2015.