About 80 workers will be laid off in July at the Danos and Curole Marine Contractors’ fabrication division facility in Morgan City.
The layoffs at the Amelia yard will occur between July 13 and July 27 because of “a significant downturn in business,” the Gray-based oil and gas services company said in a notification to the Louisiana Workforce Commission.
The company said some employees will be transferred to other locations.
The company did not say how many workers will remain at the facility.
“Unfortunately, as a result of the ongoing downturn in the industry and customers canceling or postponing large-scale fabrication projects, we have made the difficult decision to scale down our fabrication workforce,” the company said. “We are aggressively pursuing projects and are poised to staff-up as soon as additional projects are awarded.”
Just two years ago, Danos expanded its fabrication capabilities with a 120,000-square-foot facility in Amelia, a move it said would eventually create 150 new jobs.
The oil industry was riding high in 2014 on oil priced at more than $100 per barrel. The price fell below $30 from a glut of oil from production in U.S. shale formations and a slowdown in the world economy. The price has rebounded in recent months to $48.
The company said in 2014 that the Amelia facility was designed to take on overflow work from its smaller 50-worker Larose shop and allow Danos to take on larger, multiphase projects.
The state’s labor department said re-employment services are available for affected workers at the Amelia facility through its local Business and Career Solutions Center and LWC’s Rapid Response team.