Kimray, Inc., an Oklahoma City-based oil and gas control equipment manufacturer, announced on Thursday it will reduce its workforce by 10 percent beginning the first week of March in order to address the prolonged industry downturn.
“Like many businesses in the energy industry, we are having to make very difficult decisions,” said Kimray CEO, Thomas Hill III. “After much consideration, we decided this reduction is the right thing to do for the overall health of the company, but it doesn’t make it any less difficult. We care deeply about our people.”
The reduction decision is related to a larger corporate restructuring aimed at stabilizing Kimray’s core manufacturing business. The workforce reduction will primarily impact Kimray’s administrative and support staff, company officials said.
“We are preparing appropriate severance packages and benefits for employees whose positions will end,” said Executive Vice President, Shad Glass. “We will offer job placement services and counseling to help with the transition.”
Officials said the announcement follows numerous efforts made by Kimray to avoid cutting its workforce. Last year, the company froze wages, offered a voluntary opt-out program to its Oklahoma City employees, cut departmental budgets, reduced capital investments and sent employees to work for community non-profits when the demand for manufacturing work began to decline.
“Kimray has endured the ups and downs of oil and gas for 67 years. Our people are resilient, and we will work together through this difficult time in order to continue serving our customers and community for years to come,” Hill said.