Baker Hughes to axe 7,000 jobs
Oil drilling is falling faster in North America than in the rest of the world, according to Baker Hughes, which on Tuesday announced plans to cut 7,000 jobs in the first quarter of this year in response to the plunge in oil prices.
The oil services company warned of “challenging” conditions ahead, with the industry in the early stages of a downturn of the type seen once or twice every decade.
Halliburton, the rival oil services firm that last November agreed a takeover of Baker Hughes now valued at $26.8bn, also on Tuesday highlighted a sharp slowdown in activity.
Dave Lesar, Halliburton’s chief executive, said spending by the oil companies that are its customers had on average been cut 25-30 per cent, “as they adjust their spending to operate within their cash flows” in response to falling oil prices.
He added that many customers were still revising their budgets down, making it “difficult to size your business in today’s US market in particular because it is such a fast-moving target”.
Baker Hughes’ planned job cuts represent about 12 per cent of its global workforce of about 59,000.
Last week Schlumberger, the world’s largest oil services group, said it planned to cut 9,000 jobs, or about 7 per cent of its workforce....