Aegion cutting 900 jobs, cites low oil prices

Aegion said it is cutting about 900 employees, or 14.5 percent of its workforce, as part of a restructuring plan that started in January in response to low oil prices hurting the company’s energy-related business.

The Chesterfield-based company, which offers products and services to protect against the corrosion of industrial pipelines, reported a loss of $3.8 million, or 11 cents per share, for the first quarter of 2016. That was down from a profit of $1.4 million, or 4 cents a share, for the same quarter last year.

Revenue for the quarter fell about 5 percent, to $293.9 million.

Aegion said earlier this year it would restructure in an effort to reduce annual expenses by $15 million. The company said Tuesday that the efforts are now expected to reduce costs more than originally projected.

Of the 900 job cuts, 705 had been made as of March 31, the company said.

Read more: St. Louis Business Journal, St. Louis Post-Dispatch

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