Schlumberger cuts 10,000 jobs
22 Jan 2016
Oilfield services firm Schlumberger has confirmed it cut 10,000 jobs in quarter four last year.
The news came as Schlumberger revealed its full year results for 2015, which saw the company’s revenue fall 39% in North America and 21% elsewhere.
Those figures include a drop in exploration activity in the UK, which Schlumberger chief executive officer Paal Kibsgaard said was due to “decelerated customer spending”.
“Negative market sentiments intensified in the fourth quarter, with oil over-production continuing and extending the bearish trend in global inventories,” Kibsgaard said.
“This led to a further drop in oil prices, which reached a 12-year low in January 2016. The worsening market conditions added further pressure to a deepening financial crisis in the E&P industry, and prompted customers to make further cuts to already significantly lower E&P investment levels.”
In August last year Schlumberger announced plans to “effectively combine” with flow equipment provider Cameron in a deal worth $14.8 billion (£9.5bn).
“As the pending Cameron transaction progresses, pre-close integration plans are substantially complete, and we will be ready to close once all regulatory approvals are received,” Kibsgaard said.
“We expect this to occur in the first quarter of 2016,” he added.
