Houston-based oilfield services giant Schlumberger is cutting 11,000 jobs following a 1Q decline of 29%, Chairman and CEO Paal Kibsgaard said Friday. The job cuts are in addition to a reduction of 9000 jobs the company made in January.
“In spite of the detailed preparations we made in 4Q, the abruptness of the fall in activity, particularly in North America, required us to take additional actions during the quarter,” Kibsgaard said in a media release. “These included the difficult decision to make a further reduction in our workforce of 11,000 employees, leading to a total reduction of about 15% compared to the peak of 3Q 2014.”
The drop in oil prices last summer amid an unbalanced market stemming from robust production, high storage levels and modest demand saw crude oil prices slide from a summer high of about US$107/bbl to under half that within a few months. The resulting drop in production was particularly hard on the oilfield-services sector, with Weatherford and Baker Hughes cutting about 8,000 and 7,000 workers, respectively.