When,
The Schlumberger Ltd, world biggest oilfield
service providing company declared in January to terminate 9,000 of its workforce
that was considered as the single largest cut in the industry. Falling crude
prices forcing the company to terminate another 11,000 positions.
Recent
announcement of job cutting will bring it to total 20,000 making the workforce
of Schlumberger around 15% smaller than comparing to the workforce it had
during the third quarter of 2014.
According to Cowen & Co, power producing companies depending on the service providers are going to trim down their expenditure by $114 billion within this year. Crude oil price fall after June forced the industry to declare around 100,000 job cut globally. But the Schlumberger and similar companies were the first to digest the sudden impact of oil price drop. Analyst of Edward Jones in St. Louis, Rob Desai predicted another possible deeper job cuts. The same is also predicted by analyst James Wicklund from Credit Suisse Group AG, Dallas.
Schlumberger's services include drilling wells, hydraulic fracturing and mapping underground oil pockets for power producing companies. Last year two main competitors of Schlumberger, Halliburton Co. and Baker Hughes Inc., agreed to merge in a $34.6 billion deal and their first earning report is due by next week. The number of job cuts in unexpected to the analyst Rob Desai.
On Thursday while giving the earnings statement, proclaiming the first quarter profit in four years, Houston- and Paris-based Schlumberger chief Paal Kibsgaard state that more attention is required for sudden drop in North American drilling. Schlumberger declared 50 cent quarterly dividend and announces a cut of $2.5 billion of its capital spending as declared $3 billion previously one day after the oil price recovered from $46.59 to $63.70 on Thursday.
According to Cowen & Co, power producing companies depending on the service providers are going to trim down their expenditure by $114 billion within this year. Crude oil price fall after June forced the industry to declare around 100,000 job cut globally. But the Schlumberger and similar companies were the first to digest the sudden impact of oil price drop. Analyst of Edward Jones in St. Louis, Rob Desai predicted another possible deeper job cuts. The same is also predicted by analyst James Wicklund from Credit Suisse Group AG, Dallas.
Schlumberger's services include drilling wells, hydraulic fracturing and mapping underground oil pockets for power producing companies. Last year two main competitors of Schlumberger, Halliburton Co. and Baker Hughes Inc., agreed to merge in a $34.6 billion deal and their first earning report is due by next week. The number of job cuts in unexpected to the analyst Rob Desai.
On Thursday while giving the earnings statement, proclaiming the first quarter profit in four years, Houston- and Paris-based Schlumberger chief Paal Kibsgaard state that more attention is required for sudden drop in North American drilling. Schlumberger declared 50 cent quarterly dividend and announces a cut of $2.5 billion of its capital spending as declared $3 billion previously one day after the oil price recovered from $46.59 to $63.70 on Thursday.
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