Vancouver’s Finning International Inc. (TSX:FTT) plans to cut 400 to 500 more jobs from its workforce this year, in response to an “unprecedented economic environment” in its largest markets, especially mining and oil and gas.
The downsizing follows two earlier, massive rounds of cuts that resulted in a 13% workforce reduction in 2015.
At the beginning of 2015, Finning announced it would reduce its global workforce by 1,900, and in November 2015 announced it would cut another 1,100 jobs in Western Canada and Chile.
In a fourth quarter earnings call February 18, the company announced it will slash 400 to 500 more jobs in 2016 from its global workforce.
“I am keenly aware these are difficult decisions for our people, who are the foundation of this company,” Finning CEO Scott Thompson said.
“However, given the environment and our view that markets will remain depressed for a significant period of time, they are unavoidable.”
One day earlier, Finning announced its chairman, Doug Whitehead, will step down, replaced by Mike Wilson. Whitehead will remain on Finning’s board of directors.
Finning is one of the world’s largest dealers for Caterpillar (NYSE:CAT), which makes heavy equipment for industry, including the mining and oil and gas sector, both of which have suffered a significant slowdown.
Headquartered in Vancouver, the company has operations across Canada and in South America and the United Kingdom.
Finning’s fourth quarter revenue was down by $285 million – from $1.8 billion in Q4 2014 to $1.5 billion in Q$ 2015, resulting in a $282 million net loss.
New equipment sales in Canada were down 46% and revenue down 26%, compared with South America, where new equipment sales were down 23% and revenue down 11%.
Finning’s stock is down 24% since this time last year.
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