Baker Hughes laying off hundreds

Global restructuring to eliminate duplication and boost efficiency

Baker Hughes is laying off “several hundred” employees in the Houston area as part of a restructuring of its oil field services and equipment segment, a spokesman for the company confirmed Friday.

The Houston oil field services and energy technology giant declined to be more specific about how many people would be laid off but said it was part of an ongoing global restructuring of its oil field services and equipment segment that began last month. The company employs roughly 58,000 people globally, up from roughly 55,000 at the same time last year.

Nancy Buese, the company’s chief financial officer, said during an earnings call last month that the company was restructuring the division to “remove duplication and drive more cost efficiency across the business.” Severance costs related to the restructuring were included in the company’s fourth quarter earnings, she said, though they were not detailed separately.

The cuts come despite a muchimproved 2023 compared to 2022, when the company grappled with chip shortages that hampered its digital solutions business and losses related to its Russian exit. It reported $1.9 billion in net income during 2023, up from a loss of $601 million in 2022.

A company spokesman said Friday in a statement that changes the company is making to its oil field services and equipment business “simplify our organization, improve processes and execution, deliver profitable growth, and meet the vast energy technology challenges and opportunities into the future.”

“Baker Hughes continually reviews our portfolio and business operations to ensure we are best positioned to serve our customers and deliver on our long-term growth objectives,” the statement said.