Weir Group said orders from its oil and gas business has dropped more than 20% in the first quarter of the year.
The company has predicted the fall – of 23% – will continue in the second quarter of the year.
The engineering firm is planning $15.35million in cost reductions from its oil and gas segment.
The company will also reduce its headcount by 125 positions – mostly in North America – and will also be consolidating its service centres in the region.
Weir said first-quarter revenue on a constant currency basis fell, in line with the 9% decline in order input.
The company, which makes valves and pumps for the energy and mining industries, said orders from its mining business were up 5 percent in the quarter and kept its revenue and operating margin forecast for the division.
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