YOUNGSTOWN, Ohio (WKBN) – Vallourec Star announced Thursday that it will cut 60 to 80 jobs by early August in response to reduced demand and sales, according to a press release.
The release from the company stated that impacted workers will receive a severance package. Vallourec supplies tubing and piping for the oil and gas industry, which has experienced a bit of a downturn, according to the release.
“We exhausted all options before taking this step, including voluntary layoffs and early retirement.” President Judson Wallace said. “We have a strong, skilled workforce and I am hopeful we can rehire people back as our needs change in the future.”
Vallourec said it remains confident in its hopes for long-term business success.
Both Youngstown and Girard will see fewer income tax dollars once those employees are let go, as much as $80,000 for each city. But Girard Mayor Jim Melfi said he is not surprised.
“We have been adjusting all along because although they have eliminated these jobs prior to this date, most of these people were probably laid off, so we were not going to get their income tax anyway,” Melfi said.
“We are hopeful that as they move into 2016 and think about 2017 that they will get back up to full speed. It is not reflective of anything that goes on here locally. They still have a great relationship with us and a great workforce,” Youngstown Mayor John McNally said.