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Sunday, 23 June 2024
Friday, 22 Nov 2019 09:35 pm

U.S. Silica Announces Cost Reduction Actions

U.S. Silica Holdings let go of 230 employees to improve efficiencies

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U.S. Silica Holdings, Inc. has announced a reduction in its workforce of approximately 230 employees to improve efficiencies and better align operations and support staffing with the current challenges in its energy markets. Expected annual SG&A savings from these actions as well as other cost reductions are approximately $20 million.

The staffing reductions equal approximately 10% of the total company workforce and include corporate employees and the idling of both the Utica, Illinois and Tyler, Texas mines. Other facilities impacted, but not idled are; Crane County in Texas, Sparta, Wisconsin, and Festus, Missouri.  The workforce reduction in operations will reduce staffed O&G capacity by 7 million tons, which will be better aligned with current demand.

The Company expects to incur approximately $1.7 million in related severance costs in the fourth quarter of 2019 and will consider any impairment charges as it closes the fourth quarter and fiscal year end.

"The difficult decisions announced today are an important element of our plan to protect margins and generate free cash flow in an increasingly competitive oil and gas completions market," said Bryan Shinn, president and chief executive officer. "The actions taken realign our operational footprint and cost structure to more efficiently serve energy customers while simultaneously supporting the expected growth of our Industrials & Specialty Products segment.''


Meeta Ramnani

Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor at Smart Market News, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.


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