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CALGARY, A.B. – Another Calgary-based oilfield services company is reporting job cuts as activity in Canada slows due to lower oil and gas producer spending.
STEP Energy Services Ltd. says it cut 13 percent of its administrative staff in early 2019 and has reduced field staff by 12 percent since Oct. 1.
In a regulatory filing last year, the company indicated it had 1,120 employees at the end of 2017, most in Canada.
It added about 400 U.S. staff with its $350-million acquisition of Oklahoma-focused Tucker Energy Services Holdings, Inc., last spring.
Last month, Calgary-based Trican Well Service Ltd. said it had cut 160 jobs in the fourth quarter and, a few weeks later, producer Encana Corp. said it had cut its workforce by 15 percent and ranks of executives by 35 percent after closing its deal to buy U.S. rival Newfield Exploration Co.
STEP said the administrative job cuts it made would result in savings of about $4.1 million annually.
“Our outlook for Canada remains cautious as recent client budgets underpin a commitment to spend within cash flow,” said STEP CEO Regan Davis on a conference call on Wednesday.
“This is evident by a 30 to 35 percent lower rig count in this quarter versus last year.”
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