Weatherford International PLC (NYSE: WFT) announced during its earning call plans to reduce its workforce by 18 percent this year.
The company had a total of 56,000 employees worldwide at the beginning of the year but had a round of layoffs during the first quarter lowering that count to 49,000.
Weatherford expects to be at 6,000 oil rig workers and 39,000 primary business employees once all staff reductions are complete. This move is projected to take the total job cuts for the year up to 11,000 employees.
The firm expects to reduce expenses by $640 million annually from the job reductions. Additionally the company plans to consolidate or phase out 60 operating facilities by the end of 2015.
Weatherford CEO Bernard Duroc-Danner said in a prepared statement, “We are focused on de-layering our organization structure and emerging from this down cycle a leaner, fitter and much more disciplined company, poised to improve margins with strong incrementals going forward.”
The company reported a net loss before charges of $33 million on revenues of $2.79 billion for the first quarter of 2015.
Weatherford is one of the largest oil service companies providing technology and innovative solutions to the oil and gas industry. The firm operates in over 100 countries with approximately 1,400 locations, including manufacturing, service, research, and training facilities.