Houston-based Halliburton has announced it will lay off an additional 5,000 employees last week in an emailed statement. This comes as no surprise with the price of oil declining more than 70 percent since its’ height in the summer of 2014.
The battered firm has laid off about 15,000 employees since the oil market crash. Before the downturn, Halliburton had over 80,000 workers.
Emily Mir, a Halliburton spokesperson states, “We regret having to make this decision but unfortunately, we are faced with the difficult reality that reductions are necessary to work through this challenging market environment. We thank all impacted employees for their many contributions to Halliburton.”
A year ago, the firm announced a deal valued at $34.6 billion that’s pending approval to acquire Baker Hughes. Once approved, expect additional job cuts while the companies streamline operations.
Recently, Halliburton’s biggest competitor, Schlumberger, announced it would lay off an additional 10,000 employees. As a result of the current market conditions, all oilfield related service providers are leaning out to stay competitive.
Some analysts are predicting the oil price to drop into the teens because of more than 1,000 rigs idled over the past year and a half, according to a Baker Hughes report.