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U.S. Silica to layoff 230 employees, idle mines as part of cost-cutting move

U.S. Silica Holdings Inc. said Friday it is cutting 230 jobs, or about 10% of its workforce, in an effort to “improve efficiencies” given challenges in its energy markets. The stock is still inactive in premarket trading. The job cuts include corporate employees and job losses from the idling of the mines in Utica, Illinois and Tyler, Texas. Other facilities that will be impacted, but not idled, are those in Crane County, Texas, Sparta, Wisconsin and Festus, Missouri. The company expects to incur about $1.7 million in severance costs in the fourth quarter of 2019, while the expected savings from the job cuts and other cost reduction actions are about $20 million a year. “The difficult decisions announced today are an important element of our plan to protect margins and generate free cash flow in an increasingly competitive oil and gas completions market,” said Chief Executive Bryan Shinn. The stock has tumbled 54.7% year to date, while the SPDR Energy Select Sector ETF has gained 4.7%, the Russell 2000 has climbed 17.5% and the S&P 500 has advanced 23.8%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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