World Economy

Halliburton Will Cut 5,000 Jobs

Halliburton Will Cut 5,000 JobsHalliburton Will Cut 5,000 Jobs

Oilfield services provider Halliburton, pressured by a prolonged slump in crude oil prices, will further slash its workforce by about 8%, or by 5,000 jobs, company spokeswoman Emily Mir told Reuters on Thursday.

The more than 70% fall in global crude prices since mid-2014 has led to a series of job cuts and additional cost-cutting efforts from several companies including the world’s largest oilfield services provider, Schlumberger.

Halliburton has already reduced its global headcount by 25%, or almost 22,000 employees, since 2014. The company had about 65,000 employees worldwide at the end of 2015, compared with more than 80,000 at Dec. 31, 2014, according to a regulatory filing.

Halliburton is awaiting regulatory approval for its acquisition of Baker Hughes, and the company said last month it was yet to reach an agreement with US and European regulators about the “adequacy” of proposed divestitures.

Rival Schlumberger laid off 10,000 employees in the last quarter of 2015, taking its total job cuts to 34,000, or 26% of its workforce, since November 2014.

Schlumberger Chief Executive Paal Kibsgaard said in January he was “optimistic” the company would not have to cut more jobs in the current oil downturn.

The dramatic reduction in drilling activity in the US has cost oil services companies lots of business. The drilling business they do get has been won with steep discounts amid the downturn. For instance, Halliburton said its US customers will spend about 50% less in 2016 than last year.

Many smaller oil services companies are now experiencing financial stress. At least 44 services companies have filed for bankruptcy since the end of 2014, according to law firm Haynes & Boone.