Finning to lay off 500 people amid oil downturn
Canada's largest Caterpillar heavy equipment dealer already cut 1,900 jobs last year
Canada's largest Caterpillar heavy equipment dealer says it will cut 400 to 500 jobs from its global operations this year, in addition to the 1,900 that were announced last year in two separate rounds of downsizing.
Vancouver-based Finning International Inc., which also operates in South America and the U.K., says about 200 of the latest cuts are in Canada and the rest will be spread across its international operations.
Finning is grappling with the downturn in the oil and gas and mining industries, which are major users of the heavy equipment sold and serviced by the company in Western Canada and abroad.
Finning announced in November that it would lay off 1,100 people, or eight per cent of its total workforce at the time, including 440 in Western Canada.
Combined with a previous round of cuts, that brought the total jobs lost up to that point to 1,900. Thursday's announcements now brings that total to up to 2,400.
The company's fourth-quarter results, which included the November announcement, showed revenue down 16 per cent from a year earlier, to $1.52 billion from $1.8 billion.
Canada's share of overall revenue was $698 million, down 26 per cent from a year earlier. South American revenue fell 11 per cent to $526 million and revenue from the U.K. and Ireland was up 11 per cent to $294 million.