Schlumberger cuts 11,000 more jobs; bringing total to 20,000 for the year

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Houston-based Schlumberger (NYSE: SLB) announced today a second round of layoffs. The oil service giant plans to lay off 11,000 workers globally. The company didn’t specify how many jobs in Houston were affected.

The layoff will bring the total to 20,000 employees, about 15 percent of its workforce. The first round happened in January when the company announced it was laying off 9,000 employees.

Related: Schlumberger is laying off 9,000 employees

Oil companies have been forced to revise capital expenditures and make difficult business decisions because the price of oil has declined by 50 percent since its last high back in June.

According to staffing firm Swift Worldwide Resources, the oil declines over the past nine months have resulted in more than 120,000 job losses for the industry.

“Looking at the macro environment, the global economy continues its steady recovery, and oil demand is still expected to increase by 1 million bbl/d in 2015. However, the significant reductions in E&P spend are starting to impact supply in both North America and internationally, and supply is expected to tighten further in the second half of the year,” the company said in a prepared statement.

Related: Halliburton to cut about 6,400 jobs

In the first quarter of the year, the firm earned profits of $975 million, or 76 cents a share, compared to $1.59 billion this period last year. The earnings fell well below analyst expectations of 91 cents a share. Schlumberger said it took a $390 million charge in the first quarter because of job cuts and benefits programs. The company cited the “severe fall” in US and North American oilfield activity as the reason.

Other oilfield service providers, such as BP (NYSE: BP) and Houston-based Apache (NYSE: APA) are also cutting back amid slumping oil prices and have downsized their workforce.


1 Comment on "Schlumberger cuts 11,000 more jobs; bringing total to 20,000 for the year"

  1. Great informative!

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