Schlumberger, one of the largest oilfield service providers in the world, has announced a plan to slash more than 21,000 employees, close to a quarter of its entire workforce, to help it deal with the slump in business caused by the coronavirus pandemic.
According to the company, it will pay more than $1bn in severance payments, the vast majority of the amount expected to be paid during the second half of this year.
“This has probably been the most challenging quarter in past decades. Schlumberger second-quarter revenue declined 28% sequentially, caused by the unprecedented fall in North America activity, and international activity drop due to downward revisions to customer budgets accentuated by COVID-19 disruptions,” said Schlumberger CEO Olivier Le Peuch.
“We believe the decisive and comprehensive measures we have taken to face the industry reality will continue to protect our liquidity and cash positions and allow us to expand our margins. We have taken the long-term view in restructuring our company—aligning with our customers’ workflows, empowering a lean and responsive organization, and accelerating the execution of our performance strategy, with capital stewardship, fit-for-basin, and digital as key attributes of success,” Le Peuch added.
Schlumberger reported revenues of $5.4bn for the second quarter, down 28% year-on-year, resulting in a net loss of $3.43bn.