Halliburton to slash 1000 jobs

HALLIBURTON will slash about 1000 jobs from its Eastern Hemisphere operations effective immediately, citing the current depressed oil market as the root cause.

Anthony Barich

The oil field service giant’s director of public relations Emily Mir confirmed to the cuts to Rigzone, but said no layoffs had occurred or were currently planned as a result of Halliburton’s pending acquisition of rival Baker Hughes.

“The decision to eliminate jobs is never easy,” she said.

“Our talented workforce is the foundation of everything that we accomplish and we place the highest value on the commitment and hard work that our employees dedicate to building our company.

“Yet we believe these job eliminations are necessary in order to work through this market environment.”

Halliburton chief financial officer Mark McCollum told investors on Wednesday that with the fall of the oil prices the Middle East “seems to be the nexus of our current woes in terms of dropping prices and production”

He added that the company was “starting to see headwinds in the Europe, Africa and Caspian regions” in its Eastern Hemisphere portfolio and that falling crude prices had impacted the company more in international markets than in North America.

McCollum said Halliburton expected US$75 million ($91 million) in restructuring charges – one-time costs related to severance pay and other items – in the fourth quarter related to staff cuts and reduction of some operational activity.

As reported in ILN sister publication Energy News, BP executives also told investors on Wednesday that the company expected $1 billion in restructuring charges over the next year, while oil field service giant Schlumberger also said last week it expected $200 million in charges related to layoffs associated with retiring some seismic vessels.

Kiplinger reported that low oil prices have driven the desire of oil and gas companies to pump more oil while spending less on equipment and materials.

“Service providers such Halliburton and Baker Hughes … now seeking to merge … also figure to see profits decline next year,” Kiplinger said.

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