Houston-based Schlumberger (NYSE: SLB) announced today during its fourth quarter earnings call that it will cut 8 percent of its workforce which is about 9,000 employees.
Schlumberger cited lower commodity prices as the reason for the job cuts and anticipates lower exploration and production spending in 2015.
Over the last six months, the company shares have declined more than 30 percent as the price of crude oil dropped more than 50 percent from its high last June.
The layoffs have already begun and are expected to be completed later this year according to spokesman Stephen Harris in an email.
Schlumberger reported earnings per share of $1.50, excluding special charges, on revenue of $12.6 billion. Earnings were up 11 percent year over year while revenue was increased by 6 percent. After the report, shares were up about 1.5 percent in after-hours trading.
The company repurchased $1.1 billion of its stock for the quarter and raised its dividend 25 percent to reward shareholders who are still holding on despite declining oil process.
In 2013, Schlumberger had annual revenue of $45.3 billion making it the largest oil services provider in the US.
Back in December Schlumberger was awarded a four-year contract of an undisclosed amount for oil well services in the Mariner field on the United Kingdom continental shelf (UKCS) by Norwegian multinational, Statoil (NYSE: STO). Read more…