Schlumberger axes 16,000 jobs this year

The world’s biggest oilfield services provider said yesterday it axed a total of 16,000 jobs during the first half of 2016.

Schlumberger’s latest job cuts figure was revealed in its first half results.

The company, which employs about 100,000 people in 85 countries, including about 6,000 in the UK, said the headcount reduction had cost it nearly £500million in restructuring charges.

It also reported a near £1.5billion writedown on the value of fixed assets, inventory and seismic data, as well as merger and integration costs totalling more than £255million resulting from its £10billionplus cash and shares deal to buy industry rival Cameron International.

Pre-tax losses for the first six months of 2016 narrowed to £1.44billion, from £2billion a year ago. Schlumberger, which has a big presence in the northeast and principal offices in Paris, Houston, London and The Hague, said revenue was 30% lower at just under £10.5billion.

Chairman and chief executive Paal Kibsgaard said market conditions had worsened in most parts of the group’s operations.

But he added: “We now appear to have reached the bottom of the cycle. Our second-quarter revenue increased 10% sequentially, reflecting a full quarter of activity from the acquired Cameron businesses that contributed $1.5billion (£1.15billion) in revenue.

“As oil prices have nearly doubled from their lows of January 2016, we are now shifting our focus to recover the temporary pricing concessions that have been made, and to renegotiate contracts with limited promise of longer-term financial viability.” Mr Kibsgaard said service firms needed better terms to help operators reverse falling oil production, adding: “We have made a series of moves that position us well for the inevitable market recovery. “Our balance sheet remains strong in spite of our investments and the cash returned to our shareholders.”

Paal Kibsgaard, Schlumberger CEO