Seismic surveyor ION Geophysical will lay off 25% of its workers as part of its cost-cutting initiative, and a move to scale down its operations negatively affected by low oil prices.
The layoffs are expected to be completed by September 30, 2015, with ION expecting to incur $5-6 million in termination charges.
The cuts will help ION reduce annual operating costs by approximately $40 million. The company explained that the cost savings will consist primarily of payroll reductions and reductions in discretionary spending associated with a smaller workforce, as well as additional cost control measures.
When combined with the cost savings undertaken since December of 2014, the Company will have achieved a total estimated annual savings of $80 million and a 50% reduction in its workforce, ION Geophysical said in a statement on Wednesday.
Brian Hanson , the Chief Executive Officer for the Company said: “We are an asset light company and have the ability to adjust our cost structure to align with revenue levels. When commodity prices and consequently the business’s revenues recover, we will rescale our workforce to meet the demand.”
Prior to its Wednesday announcement, ION on Tuesday issued two separate releases in which it revealed it had won two contracts for surveys in Tanzania and Somalia Puntland.
Offshore Energy Today Staff