While posting a $2.16 billion loss in the second quarter of 2016, Schlumberger has also announced the elimination of over 8,000 jobs.
Schlumberger is the world biggest oilfield services company and, as of a month ago, was the largest energy employer in Houston. However, in the two years since the beginning of the current oil rout, the giant has cut back a grand total of 50,000 positions.
With offices in Houston, The Hague, London, and Paris, Schlumberger cut 8,000 jobs in the first quarter and an additional 10,000 in the fourth quarter of 2015.
At the start of the week, Schlumberger posted a total count of 113,000 people in the company’s employ. But on Thursday, the earnings release counted just 100,000 employees in its workforce, drawing the spotlight to even more cuts in July.
Schlumberger’s CEO, Paal Kibsgaard, hinted that the company’s bad luck might have finally run out. “In the second quarter market conditions worsened further in most parts of our global operations,” Kibsgaard’s statement said, “but in spite of the continuing headwinds, we now appear to have reached the bottom of the cycle.”
In April, Schlumberger completed its purchase of Cameron International, a Houston company. This deal supplied nearly 20,000 jobs globally, 4,000 of which were positioned in Houston. In addition to this, the company labeled 5,500 of its contractors as long-term employees which furthered Schlumberger’s total headcount.
Earlier in the week, another industry giant, Halliburton posted a loss of 14 cents a share for the second quarter. According to Halliburton, North America’s market reached rock bottom during the second quarter, but predicted a “modest uptick” in the rig count for the rest of 2016.
“The major debate is the trajectory of North America recovery,” Barclays analyst, J. David Anderson wrote to investors. The July 19 also said, “We expect SLB and HAL again to provide contrasting narratives on North America.”
Article written by HEI contributor Briana Steptoe.