Glasgow-based engineering company Weir Group is cutting another 400 jobs from its global workforce to save costs during the downturn in the oil and gas industry.
Most of the positions will be shed in operations in North America, Africa and China.
Weir’s 1,400 employees in the UK, including 600 in Scotland, will not be affected.
The latest global job cuts follow the termination of about 900 posts in North America earlier this year, bringing Weir’s worldwide workforce down from 15,000 to about 13,000 personnel.
CEO Keith Cochrane said: “The challenges in our end markets intensified during September and October. Mining customers took measures to preserve cash by delaying investments, reducing purchases of consumables, and mothballing or curtailing production volumes at higher cost mines.”
A 14% decline in North American rig count in the past two months and oil prices falling below $50 a barrel impacted on oil and gas trading.
The oil-directed rig count was down 64% from October 2014, and gas-directed rigs had reduced by 40% since the start of this year.
Weir’s third-quarter order input was down 29% year-on-year and 8% on the second quarter of 2015.
Mineral orders were down 1%, oil and gas orders fell 58%. Original equipment fell 60%, aftermarket was down 57% and power and industrial were down 15%.
Net debt rose during the quarter as a result of foreign exchange movements, the acquisition of Delta Valves and restructuring costs.
The group had taken further action to support profitability, which would generate an additional £25 million in annualised cost savings and include workforce reductions and service centre consolidations.
The latest action brings the total savings carried out by the group in the last year to more than £110m.
Mr Cochrane said Weir would continue to invest in technology to extend its global leadership positions, ensuring it is positioned to benefit from the good long-term structural growth prospects of end markets.
Full year earnings are expected to be in line with market consensus.