Weir Group to axe 400 jobs in bid to cut costs

Image source, Weir Group

Weir Group is cutting a further 400 jobs overseas as it looks to reduce its costs.

In a statement, the Glasgow-based valve and pump maker said it expected trading conditions to remain challenging through the fourth quarter of the year, with further declines in oil and gas exploration and production.

It is also under pressure because of lower mineral prices.

Weir said it intended to make 拢25m worth of cost savings.

This will include additional workforce reductions and service centre consolidations.

It is understood 140 posts are going in its oil and gas division - the large majority of those in North America.

At total of 225 jobs will be lost at its minerals division, mostly in Africa, and some in Australia. And 40 jobs will be cut at Weir's operations in China.

Chief executive Keith Cochrane said: ""The challenges in our end markets intensified during September and October.

"Looking ahead, we expect trading conditions to remain challenging through the fourth quarter with further declines in upstream oil and gas activity.

"We will focus on delivering further cost and procurement savings, alongside strong cash generation."

Weir has reduced its oil and gas workforce by 37% over the past 12 months, and its total global workforce has been reduced by more than 10%.