GE (GE) Plans to Close Lufkin Facility in Texas Amid Lagging Demand for Oil Drilling Equipment
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General Electric (NYSE: GE) is planning to shutter its Lufkin, Texas, facility as it works to deal with the drop in demand for drilling equipment amid the recent plunge in crude oil prices.
According to the WSJ, about 250 positions will be eliminated.
GE will close one foundry and trims jobs at another nearby facility. Both were part of a 2013 deal where GE acquired Lufkin Industries for about $3.3 billion.
In total, GE announced about 500 job cuts from its Lufkin unit this year. The moves came as GE also trimmed revenue and profit expectations for its oil and gas equipment business by 10 percent this year.
Shares of GE are positive in early trading amid China's move to cut key rates even further.
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