DMC Global cuts one-third of workforce
Editor’s Note: As a public service, BizWest is making all of its coverage of the COVID-19 virus free to read. Please consider subscribing to BizWest to support our efforts to keep you informed on Northern Colorado and the Boulder Valley’s top business news.
BROOMFIELD — DMC Global Inc. (Nasdaq: BOOM) laid off 264 employees to stay afloat as global oil prices and the decreased demand fueled by the novel coronavirus crisis presses on the oil and gas industry.
In a statement Wednesday, the Broomfield supplier of drilling equipment said the layoffs, 97 of which were temporary workers, equals just about a third of its workforce. The job losses were mainly focused in DynaEnergetics, DMC’s subsidiary providing oil and gas perforation equipment and included both manufacturing and administrative positions.
“This workforce reduction is a difficult and unfortunate process, but it is essential we realign the size of our organization to match the smaller size of our addressable market,” CEO Kevin Longe said.
DMC said it hopes to offer affected employees their jobs back at a later point.
The global oil and gas industry is reeling from dual crises. There is a global lack of demand due to stay-home measures instituted in major economies to slow the spread of the COVID-19 virus, while an ongoing price war between Saudi Arabia and Russia, the second and third-largest oil producing nations in the world behind the U.S., floods the market with cheap supply.
Earlier today, Weld County driller Whiting Petroleum Corp. (NYSE: WLL) filed for Chapter 11 bankruptcy in a bid to reorganize its debts.
DMC announced the layoffs after markets closed Wednesday. Its stock closed the trading period at $22.07 per share, a 4% drop that was .44% less than the greater drop in the Dow Jones Industrial Average.
© 2020 BizWest Media LLC