The main entrance to the Kilgore facility for oilfield services giant Halliburton is seen in 2018. On Wednesday, Halliburton notified the Texas Workforce Commission it had laid off 233 employees in Kilgore, with plans to close the facility and move operations to Bossier City. The layoffs and closure are blamed on the COVID-19 pandemic, which has cut global demand for oil and natural gas, marking a historic industry slump.

Oilfield services giant Halliburton laid off 233 employees in Kilgore on Wednesday, and it plans to close the facility and move the operations to Bossier City, the company reported.

Houston-based Halliburton on Wednesday notified the Texas Workforce Commission of the layoffs at the facility at 2906 FM 349, citing the “continued decline in customer activities,” with U.S. rig counts falling more than 30%.

“At this time, it is expected that the facility will not remain open,” the company wrote.

Affected employees will not have bumping rights, the letter to the Workforce Commission stated, indicating the workers will not be given preference if another job comes open in the company.

Though the letter to the Texas Workforce Commission was dated Wednesday, the federal Worker Adjustment and Retraining Notification act requires companies planning to lay off 50 or more employees to give 60 days of notice.

“This decision takes advantage of Halliburton’s real estate footprint and will increase operational efficiencies across the Haynesville Shale and adjacent oil and gas fields,” Halliburton spokeswoman Erin Fuchs said in a statement.

“We recognize that this decision will be a hardship for impacted employees, but unfortunately, this was a necessary decision to right-size our organization to current market conditions,” she wrote.

Halliburton also closed its Elmendorf facility south of San Antonio and is relocating the operations to field camps in Southern Texas, and it laid off 240 employees from a service center in Duncan, Oklahoma, The Associated Press reported. The number of employees laid off at Elmendorf was not immediately available.

The closures and layoffs are blamed on the new coronavirus pandemic, which has cut global demand for oil and natural gas, marking a historic industry slump.

Halliburton reported losing $1 billion during the first quarter and laying off 5,000 people. The company has laid off nearly 1,500 employees from Texas, Oklahoma, Colorado and Louisiana in April, filings and state officials show.

Halliburton’s action came only a week after the TWC reported fracking company FTS International Services furloughed 59 employees from its facility at 1704 E. Whaley St. in Longview. Halliburton also has had a service operation in Longview since 2009.

Kilgore business officials paid their respects to Halliburton.

“The company has been a part of the community and successfully weathered the cyclical nature of the oil and gas industry for many years,” Amanda Nobles, executive director of the Kilgore Economic Development Corp., said in a written statement. “Kilgore is a business-friendly community and has embraced Halliburton’s local presence. Kilgore helped the company celebrate its 100th birthday by proclaiming July 18, 2019, as Halliburton Day in Kilgore.”

Jill McCartney, president and CEO of the Kilgore Chamber of Commerce, said she is sorry to see Halliburton leave.

“They were one of the largest employers in Kilgore,” McCartney said. “They have a huge economic impact on our city financially. We certainly hope to see them back as soon as the oil and gas industry improves.”

Nobles said Workforce Solutions East Texas has a rapid response program for people affected by mass layoffs. She advised the former Halliburton employees to call Workforce Solutions at (844) 389-6757. 

Workforce Solutions operates a call center and conducts virtual workshops and online orientations, center Director Mary Ann Rojas said in a written statement.

“We are fortunate to be able to provide assistance and look forward to getting affected employees back to work and connecting with the resources they need,” she said.