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Houston-Based Hercules Offshore Plans to Fire 324, Rig Shutdowns and Falling Oil Prices Blamed

According to the Houston Business Journal, Hercules Offshore, Inc. plans to fire 324 of its approximately 2,200 current employees beginning on or around December 31st of this year. Of the 324 to be affected, all are offshore workers currently working on live vessels in the Gulf of Mexico.

Hercules, headquartered in Greenway Plaza along with approximately 175 Houston-based employees, notified the Texas Workforce Commission (“TWC”) of the upcoming move on November 3rd via letter, in accordance with its obligations under the Worker Adjustment and Retraining Notification Act.

According to the letter, the layoffs stem from the company’s anticipated shutdown of 4 of its rigs in the Gulf of Mexico. These shutdowns, according to the Houston Chronicle, have become necessary as a result of crude oil prices that continue to fall. The company has already taken steps to formally notify those employees that will be affected by the end-of-the-year layoffs.

Hercules, a company that specializes in shallow-water drilling, operates a global fleet of 33 jack-up rigs and 24 liftboats.