Baker Hughes is blaming the downturn in the oil and gas industry for its move to stop production at one of its operations in Lufkin, Texas.
Employees at the Buck Creek Rod Lift Systems site some 120 miles north of Houston were informed last month of the move. The shutdown means about 78 out of the 93 employees at the site will be put out of work.
“The downturn in the oil and gas industry has forced us to review our operations to determine how we can best stay competitive and meet the needs of our customers, changes that are critical to our future success even as we emerge from this volatile environment,” stated a company spokesman. “After careful consideration and evaluation, we have made the difficult decision to stop production at our Buck Creek Rod Lift Systems site in Lufkin, Texas.”
The job cuts will go into effect at the end of June and continue through mid-July. Some workers at the site will be transferred to another worksite also in Lufkin. It was just three years ago when 330 jobs were cut at the same operation. Those cuts came after GE Oil and Gas acquired Lufkin Industries LLC.
The move affects workers in manufacturing, finance, sales and services, human resources, sourcing, materials, IT and administrative. The operation was a union plant and the company had bargaining agreements with the International Association of Machinist and Aerospace Workers and with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers.
“We know how hard this is for the Lufkin community, so these aren’t decisions we take lightly,” the statement concludes. “For decades, our Lufkin employees have demonstrated expertise and hard work. This decision is in no way a negative reflection of that. We will continue to have a presence in this community, including employing hundreds of workers in our Power Transmission business.”