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Worley sheds 3000 jobs as energy companies press pause on projects

ASX-listed engineering services provider Worley has cut 3000 jobs and secured an extra $465 million in debt to shore up its books, after plunging oil prices and the COVID-19 pandemic dented its project pipeline.

The $3.6 billion company, which provides services to the resources and energy sector, told the market on Tuesday it had trimmed its workforce by 5 per cent, from 59,000 employees on January 31 to 56,000 by the end of March, with the bulk of the cuts weathered by teams engaged in field-based work.

The COVID-19 pandemic and falling oil production mean there is less demand for Worley's engineering services.

The COVID-19 pandemic and falling oil production mean there is less demand for Worley’s engineering services.Credit:Bloomberg

“Operationally, as a result of the current economic circumstances, there has been some contraction in the business from customers’ delays, deferrals and cancellations, particularly in field-based work,” the company said.

“To date, the impact on our business has mostly been on the lower margin construction-related activities that form part of our field-based services.”

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