Charlotte-based Babcock & Wilcox Enterprises said Wednesday that it’s cutting its global workforce by 9 percent as part of a cost-cutting initiative and exploring “strategic alternatives” for two of its business lines.
B&W, which provides energy and environmental technologies and services to power and industrial customers, eliminated about 70 jobs in the U.S. last week, affecting four employees in its Charlotte office, said company spokesman Ryan Cornell. The company now has about 100 people in Charlotte.
As part of the restructuring, B&W said it’s reducing the workforce in its Denmark-based renewable energy business, B&W Vølund, by 30 percent. In total, the company employs about 4,700 worldwide.
B&W disclosed the cost-cutting efforts as it reported a third-quarter net loss of $114.1 million, which included $86.9 million in non-cash goodwill impairment charges in its renewable segment and another business line. In the same period a year earlier, B&W posted net income of $9 million.
In 2015, Babcock & Wilcox Co. spun off its power-generation business to become Charlotte-based Babcock & Wilcox Enterprises, which provides energy and environmental services to power and industrial customers. The rest of the company became BWX Technologies, based in Virginia.
Since the spin-off, B&W Enterprises has seen its shares lose about 80 percent of their value as the company faces a series of challenges, including losses in its renewable energy business. Last month, an activist investor took a stake in B&W as part of a push for cost-cutting and other changes. In after-hours trading, B&W shares were up more than 2 percent to $4.
“We are driving cost-savings actions within our business segments and in overhead-related functions, with a target of approximately $45 million in annual savings, as we work to improve our global cost structure,” CEO James Ferland said in a statement.
In a news release Wednesday, B&W also said it’s evaluating strategic alternatives for its MEGTEC and Universal business lines as well as potential options for non-core assets.