Oil-ser­vices gi­ant Sch­lum­berger cuts 11,000 jobs as earn­ings fall

The China Post - - WORLD BUSINESS -

Oil- ser­vices gi­ant Sch­lum­berger said Thurs­day it would cut 11,000 more jobs as its first-quar­ter earn­ings tum­bled af­ter low crude prices forced it to cut drilling.

Sch­lum­berger chief ex­ec­u­tive Paal Kib­s­gaard said the lat­est round of cuts was caused by a se­vere decline in North Amer­i­can land drilling and by re­duced in­vest­ment by oil com­pa­nies over­seas.

Thurs­day’s job cuts were an­nounced on top of 9,000 lay­offs al­ready planned in Jan­uary. Sch­lum­berger cur­rently em­ploys 115,000 around the world.

“In spite of the de­tailed prepa­ra­tions we made in the fourth quar­ter, the abrupt­ness of the fall in ac­tiv­ity, par­tic­u­larly in North Amer­ica, re­quired us to take ad­di­tional ac­tions dur­ing the quar­ter,” Kib­s­gaard said.

“Th­ese in­cluded the dif­fi­cult de­ci­sion to make a fur­ther re­duc­tion in our work­force of 11,000 em­ploy­ees, lead­ing to a to­tal re­duc­tion of about 15 per­cent com­pared to the peak of the third quar­ter of 2014.”

The oil ser­vices com­pany, whose clients in­clude ExxonMo­bil, BP and other ma­jor firms, took a US$ 390 mil­lion charge in con­cert with the job cuts.

Earn­ings for the first quar­ter fell 38 per­cent from a year ago to US$988 mil­lion. Rev­enues dropped 8.8 per­cent to US$10.25 bil­lion.

Sch­lum­berger shares rose 2.5 per­cent in af­ter-hours trade to US$94.21.

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