Finning Announces Job Cuts
Prince George, B.C. – Finning in Prince George is experiencing job losses, as Finning International trims its workforce across Canada by about 500 employees.Communications Manager with Finning International, Hilary Anaka, says so far, 10 employees at the Prince George operation have been let go. That facility did have 170 people on the payroll.
The dust may not have yet cleared for that operation, as Anaka says Finning will “continue to monitor the business situation”.
She says the job cuts are the “ripple effect of decisions made by our customers.”
The company made the announcement about the job cuts during the release of it’s 2014 fourth quarter and annual report.
In the report, Finning International President and CEO, Scott Thomson said that while revenues in Canada were up over the previous year, they were not “as strong as expected, due in part to lower-margin mining parts in the revenue mix and lower gross profit from rental.”
Thomson says the company wants to reduce costs in Canada, and that will mean a reduction of the workforce “While this is a difficult decision, it is a necessary step to adjust to expected business levels.”
The downturn in oil extraction, reduced activity in mining are having an impact on the need for the equipment provided and serviced by Finning.
Comments
“She says the job cuts are the “ripple effect of decisions made by our customers.””
Wow – good to see the arrogance is alive and well.
What arrogance? It’s true. Oil prices are down, mines closed. The companies that are still operating are really watching their spending now, it only makes sense that Finning would be affected negatively. I’m actually surprised it’s taken this long for layoffs.
The shareholder is a ravenous beast possessing an ever increasing hunger, and must be fed.
metalman.
I have to agree with peegee. I am pretty sure the workers saw it coming down the line, and so did their unions. Thus the employer has the right to layoff workers, instead of having them stand around and collect a check.
If they didn’t. its pretty naïve of them to think that they were untouchable. It is a layoff, not permanent layoff. When things get busy, they will get called back. That is what the union is there for.
Unfortunate for the workers and family, but it happens…. unless you have a cushy job working for the government. Or is it…. Government and government policy changes are their greatest fears. Nothing to do with productivity nor need.
Oh don’t get me wrong, the market dictates that they clawback, especially when they are notorious for overhiring when they get busy. That’s how they’ve operated for decades, no suprise there. I just mean that the comment blaming it on the customer sounds a little pompous – but that’s just how I’m reading it.
I don’t see the pomposity or the arrogance in the comment…it seems pretty straight forward to me!
The customer’s decision to spend or not spend, to upgrade or not upgrade, to repair today or defer to better times is what drives the activity level at Finning’s branch offices. As their customers require less in terms of new equipment, new parts, and service, Finning requires less staff to meet those needs! At this time Finning must be forecasting that the reduction in world oil prices is going to be longer term than what some of the optimists out of ALberta are predicting!
Seeing the price of oil is down is there any chance there will be layoffs at IPG?
I think it’s more a case of the banker being the “ravenous beast that must be fed” rather than the shareholder, Metalman. Shareholders, whether or not they have an “ever increasing hunger”, are still taking a chance on whether it’ll be satiated or they starve. The borrowing Company might win, lose or draw, but their banker is going to be well and fully fattened one way or the other, regardless.
Oldman…just curious, what the price of oil might have to do with staffing levels at IPG. Sorry but the connection escapes me!
Just a comment on the expectations of a shareholder, Socredible.
As you know, one who invests in the shares of a given company typically expects those shares to increase in value over time, preferably every quarter. Sure, some of us will stick it out for the long run and hope for gains, but I would submit that most investors who invest in publicly traded companies will only lodge their investment capital with a company that has a decent dividend, or at least the expectation of a gain thus the onus is on the CEO to try and keep the co. ‘profitable’ one way or another. If it means trimming the workforce (overhead) then so be it.
One man’s opinion.
metalman.
Socredible:
Forgot to mention; I agree with your comments, the bank will always come out on top.
metalman.
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