Varco Cuts Worker Rolls by 33%-Plus in 6 Months

Struggling Varco International Inc. has reduced its work force in the past six months by more than 33% to a total of 225 employees, according to Dick Kertson, vice president of the Orange-based manufacturer of oil-drilling equipment.

Kertson, who last March described plans to lay off 45 employees and accept early retirements from an additional 26 senior staff members, said Wednesday that larger staff cuts were made because of a greater-than-anticipated decline in the oil industry.

A staff reduction of 113 workers, he said, was accomplished gradually over the second and third quarters of 1986. He declined to say if there would be additional layoffs.

Kertson said he was restrained by Security and Exchange Commission regulations from commenting further on the company’s operations because of Varco’s pending application to sell $20 million in convertible debentures.

According to documents filed with the SEC, Varco plans to use proceeds from the bond sale to repay approximately $10.4 million of secured debt to banks and other institutional lenders and for working capital.

Also, the documents show that in the past four years, Varco has sold excess assets for approximately $27.9 million that had a book value of about $39 million. Because Varco’s facilities still are operating at only 25% of capacity, the documents said, the company may sell additional excess machinery and equipment, probably incurring more of a book loss.