According to a Rigzone survey conducted from December 15, 2014 to January 2, 2015, energy layoffs will be continuing throughout the Houston area. Results of the survey concluded that nearly half of energy executives in Houston and the rest of the nation believe job cuts are likely in the first half of 2015.
The Rigzone survey numbers indicated that 48 percent of U.S. energy hiring managers have already experienced a loss of budgeted positions due to falling oil prices. That number is up 18 percent from last year. Also, approximately 36 percent of managers said that additional layoffs are more likely in the first half of 2015. Last year, that number was less than a third of that at 11 percent.
Rigzone President Bob Melk commented on the survey:
“The shift in outlook underscores how quickly companies are adjusting their plans to the current economy with many oil and gas firms bracing for what could be a difficult 2015. Companies are watching falling oil prices and putting a pause on some hiring plans as a result.”
Hiring, as expected, will be taking a significant hit as well. The survey found 44 percent of energy managers saying they expect less hiring in the first half of 2015 compare to the second half of 2014 and 5 percent say they don’t plan to make any hires. However, 22 percent predicted there would be more hiring.
The survey isn’t all doom-and-gloom, however. Companies with open positions are benefiting from an increase in candidates applying with 54 percent of managers reporting an uptick in applicants compared to 47 percent in July 2014. The Rigzone survey consisted of 114 respondents, a quarter of whom represent companies with more than 5,000 employees.
You can read the full story in the Houston Business Journal by clicking here.