Schlumberger to Cut Jobs

Schlumberger to Cut JobsSchlumberger to Cut Jobs

Schlumberger Ltd, the world's leading oilfield services provider, said it would cut more jobs and consolidate its manufacturing and distribution network as it did not expect a recovery in demand before 2017. "The likely timing gap between the oil price recovery and the subsequent increase in oilfield services activity in combination with a more conservative spending outlook from our customers is causing us to now take further action," said Chief Executive Paal Kibsgaard announced, Reuters reported. Exploration and production spending is expected to fall for a second consecutive year in 2016, a first since the 1986 downturn, he said. The company, which has already cut 20,000 jobs, or about 15% of its workforce, did not say how many jobs it planned to cut in the next round. Deep cost cuts helped the company marginally beat analysts' earnings estimate in the third quarter, although its net income halved from a year earlier. Schlumberger said in August it would buy equipment maker Cameron International Corp for $14.8 billion to bolster its pricing capability.