YOUNGSTOWN, Ohio (WKBN) – Vallourec Star announced Tuesday that it will lay off more workers at its Youngstown facility, according to a press release.
Sources have said around 100 jobs will be eliminated, though the company has not been able to confirm that. Vallourec did say that the layoffs would happen by the end of the week.
The layoffs are in response to a downturn in the oil and gas market and will affect all areas of the company’s production and administrative departments for both hourly and salary positions, according to the release.
The company said that all affected employees will receive a severance package.
Also, team members will split time between the company’s two Youngstown mills, a move which the company says will make its production “more lean and agile.”
The company cut 60-80 jobs back in July.
Youngstown Mayor John McNally says anytime there are layoffs, it has a major impact on the families and the city. He says the layoffs will have a negative impact on the city because of losses to the city income tax.
“It will affect our income tax collections for the rest of 2015 going into 2016,” McNally said. “We’ve already started to see a decline in income tax revenues from them.”
Even though Vallourec Star is a private company, any layoffs have a direct impact on city government because less income tax revenue means less money in the budget.
“They most certainly go hand in hand,” McNally said. “In a government like most of our governments that are primarily funded by a general fund income tax of some sort, you are always relying on the private sector.”
City leaders will see how extreme the loss in tax money will be and the possible cuts that will need to be made.
This is a developing story. Check back here and watch WKBN 27 First News at 5 and 6 for the latest.