China is a major importer of Iraqi oil. (Photo : Reuters)
The oil industry is planning to do a huge chunk of layoffs due to the major reduction in oil prices.
According to USA Today, more than 100,000 people were laid off in the past four months by the major oil factories in the United States alone. North Dakota, Texas, Oklahoma and Louisiana are the major places to hit the layoff situation currently; bearing a reduction in the oil prices by 55 percent.
Almost 91,000 jobs have been cut in the energy sector since the month of December last year; with oil giants Schlumberger and Baker Hughes announcing about 69,000 layoffs in their employee base, together. Chevron and BP have said that they would be laying off around 10,000 people and the companies which deal in oil pipes have announced a layoff number of almost 11,700, together, News 4 Etx reported.
Even though the oil industry and the related energy based companies are facing a huge loss due to the major reduction in oil prices, they are keeping their hopes high by anticipating a major spur in the demand by consumers, who would want to buy more of the oil based products as it has become so cheap.
USA is known to have a very tight labor market, and even though the oil prices have shown a steep decline since more than half a year now, the companies started to announce and plan their layoffs recently only; they did not want to cause any agitation among the group of labor market. But without any choice, they have to layoff big chunks now; or face in evident loss.
The only solution this sector is reaching for now is that the state is trying to come up with more industries, for more jobs for the labor class.
