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Energy Giants Announce More Layoffs

by Elizabeth Alford on October 19, 2015

The crude price slump is continuing to wreak havoc on the oil and gas industry with the top two energy giants announcing major layoffs this week

Related: Chesapeake Cut 740 Jobs

Schlumberger, the world’s largest provider of oil field services, announced on Friday that they would be adding more layoffs to the more than 20,000 jobs they has already cut since January. CEO, Paal Kibsgaard, would not give an exact total, he said he expects oil companies will slash spending again next year and that he doesn’t expect a recovery before 2017.

“I think the market is underestimating how long this period is going to take,” Kibsgaard told investors in a conference call Friday morning discussing the company’s third-quarter earnings.

Schlumberger’s announcement was followed by news today that Halliburton laid off another 4,000 jobs worldwide during the third quarter. The reductions brings the total number of job losses across the company to 18,000, which is 21% of the company’s global workforce.

Christian Garcia, Halliburton’s senior vice president and chief accounting officer told FuelFix that “As this market plays out, we will evaluate our operations and make further adjustments as required.”

Halliburton posted a $54 million loss for Q3, down from a $1.2 billion profit from last year.

The company is expecting an even worse environment during the fourth quarter of 2015, though CEO Dave Lesar said it is difficult to predict. “In my 22 years in this business, I’ve never seen a market where we had less near-term visibility,” he said.

 

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