Sector News

Weatherford to cut 6,000 jobs in first half of 2016

February 4, 2016
News

Weatherford International is planning to cut 6,000 jobs, or about 14 percent of its workforce, in the first half of the year in its latest bid to shield itself from the oil downturn.

The oil field service company said it lost $1.2 billion in profits during the fourth quarter and its revenue sank 46 percent to $2 billion, as demand for oil equipment and service crews continued to diminish.

The job cuts will have brought the company’s workforce down by 20,000 since the oil-market crash began in 2014, when it had about 56,000 employees. In addition to the layoffs, Weatherford said it will close nine manufacturing facilities. Last year, the company shuttered 20 facilities.

In a written statement, Weatherford CEO Bernard Duroc-Danner said he believes oil prices will start to respond to a gradual realignment of oil supply and global demand following deep cuts in oil-company capital expenditures.

“Regardless, we have geared the company and will increasingly do so for a prolonged period of very low activity,” Duroc-Danner said. “We are ready for as protracted a downcycle as markets will dictate.”

Weatherford posted a net loss of $1.2 billion, or $1.54 a share, in the fourth quarter of 2015, compared with a loss of $475 million, or 61 cents a share, in the same period the year before. Its North American sales dropped the most, by 60 percent to $699 million.

By Collin Eaton

Source: FuelFix

Related News

August 23, 2019

The higher purpose of being a CEO

Borderless Leadership

LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]

August 23, 2019

As Brexit nears, Britain’s drugs, devices and pricing regulators seek the exit

Life sciences

LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]

August 23, 2019

The Simply Good Foods Company acquires Quest Nutrition for $1bn

Food & Drink

LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]

Send this to a friend