Halliburton cuts 650 jobs in western states
Company officials say layoffs were caused by slowing demand, activity in those markets
Houston oilfield service company Halliburton laid off 650 employees in four mostly western states from New Mexico to North Dakota as demand for drilling and hydraulic fracturing services remains weak amid lackluster oil prices.
Halliburton filed a notice this week with the Colorado Department of Labor and Employment, reporting that the company laid off 178 workers from its Grand Junction, Colo., office. Halliburton officials later confirmed that the Grand Junction layoffs were among 650 jobs cut in Colorado, New Mexico, North Dakota and Wyoming.
Company officials attributed the layoffs to slowing demand and activity in those markets. Most of the affected employees were given the option to relocate to other Halliburton offices where more activity is anticipated, the company reported.
“Making this decision was not easy, nor taken lightly,” the company said in a statement, “but unfortunately it was necessary as we work to align our operations to reduced customer activity.”
The layoffs are separate from a round of layoffs that took place between April and June when the company pulled hydraulic fracturing fleets from service and cut 8 percent of its North American workforce. Halliburton declined to disclose the number of employees who lost jobs.
Demand for drilling and frack
ing services has been reeling since a dramatic 40 percent price drop at the end of last year, when prices plunged from more than $76 barrel in October to less than $43 a barrel in December. Oil prices are back near $50 a barrel, a level that is making it difficult for many oil producers to make money. Oil settled Wednesday in New York at $52.59 a barrel, down 2 cents.
Those market conditions have taken their toll on the oilfield service sector, which is under tremendous pressure from its oil company customers to cut prices.
Halliburton posted a $75 million profit during the second quarter, a dramtic drop from the $511 million profit during the second quarter of 2018.
Analysts and executives expect demand for energy services to remain soft. During a July 29 investors call, Halliburton CEO Jeff Miller said the company would not redeploy its fleets until it can see “acceptable returns.”
“The pressure pumping market remains oversupplied and we’re not afraid to reduce our fleet size,” Miller said.
Founded in 1919 and headquartered in Houston, Halliburton has more than 60,000 employees in 40 nations.