As the coronavirus pandemic brings massive layoffs at American businesses, turmoil in the oil and gas industry is hitting the workforce here.

Vallourec announced on Monday that it is reducing the workforce in North America in response to what company officials say is a sudden and significant drop of activity by oil and gas customers.

In Youngstown, 59 workers will be laid off, according to a notice filed with the state as a part of the Worker Adjustment and Retraining Act (WARN.) 

In the notice, Garrett Francis, president of VAM USA, LLC, said demand has dropped due to what he called unprecedented circumstances. 

"Due to the unprecedented issues caused by the COVID-19 pandemic and the OPEC-Russia oil price war, the company is unable to give 60 days notice of the layoff and is giving notice at the earliest practicable time. These unforeseeable business circumstances include the unanticipated and dramatic drop in oil prices and the major downturn in the U.S. economy, which have resulted in a substantial decline in the demand for the company's products and services and a significant reduction in its incoming receivables and cash flow, putting the company in the difficult position of having to reduce its workforce," Francis wrote. 

The letter says the cuts go into effect from April 30 through May 13 and will be permanent. 

The company previously said in a  news release that the reduction would affect over 900 positions across all plants as well as support staff.

Vallourec USA, a producer of seamless tubular products for the oil and gas business, has operations in Youngstown, Ohio, Houston, Texas, and Muskogee, Oklahoma.

 Implementation of the cuts, which will occur over the coming weeks, will impact more than one-third of Vallourec’s workforce and contractor positions in North America.

 “The world and the Oil and Gas Industry are living through extraordinary times, particularly in the US. The decisions announced today are necessary for a quickly deteriorating environment but preserve our ability to serve our customers efficiently,” said Edouard Guinotte, Chairman of the Management Board. “After reviewing possible alternatives, they were not made lightly, and I, together with Vallourec Executive Committee, will ensure they will be implemented in the full respect of Vallourec values.”

Vallourec says it is adjusting work hours in all countries to reduce fixed costs and investments as well as implementing strict safety measures to protect all employees from COVID-19.

According to CNBC, some analysts predict the price of crude oil could plunge below $10 a barrel as the COVID-19 outbreak has cut demand.