Houston Impact: Wood Group Plans Up to 180 Layoffs in Freeport After Client Ends Program

Wood Group plans to lay off up to 180 workers in Freeport after a client requested an end to a major support program, a move that could ripple through the broader Houston region. The company disclosed the pending cuts in a notice to state workforce officials, noting that the changes are expected to begin early next year.

Layoffs Expected to Begin in Early 2025

The Scotland-based engineering and services firm, which maintains a large Gulf Coast presence, said the layoffs will occur at its Freeport location. While the company did not name the client, it stated that the job reductions stem from the client’s decision to discontinue an ongoing support program.

Employees notified in the filing work across several types of industrial operations. Wood Group expects the cuts to take place in phases, with most separations happening within the first quarter.

The company said it will offer affected team members access to employment resources and support services. However, the filing indicates the losses are likely permanent.

Why It Matters for the Houston Region

Although the layoffs are centered in Freeport, the impact reaches far into the Houston metro area. Many engineering, industrial, and contract workers in the region support projects along the Gulf Coast. Because Houston serves as a hub for energy services and industrial supply chains, job reductions in surrounding coastal zones often influence regional demand.

Local vendors that provide logistics, fabrication, and technical support to Wood Group and its client may also feel the effects. With an ongoing slowdown in certain industrial segments, these cuts add another layer of uncertainty for companies already navigating shifting project timelines.

In addition, the decision signals how quickly large clients can scale down projects, even those that depend heavily on specialized contractors. That creates challenges for workers and business owners who operate on long-term planning cycles.

What’s Next

State regulators will review the notice to ensure compliance with layoff reporting requirements. Meanwhile, regional workforce groups are preparing to help displaced employees seek new roles in the Houston–Gulf Coast industrial network.

Some workers may find opportunities with competing engineering and construction firms, especially those expanding maintenance and upgrade projects ahead of 2025 growth cycles. Still, the timeline for reemployment may vary depending on skill sets and project availability.

Businesses across the region will watch closely to see whether other contractors face similar cuts, which could signal broader shifts in client spending.

This article is a summary of reporting by The Business Journals. Read the full story here.