Another 6,000 Jobs Eliminated In Oilfield Services Sector
By Julianne Geiger
OilPrice.com
Mon, 08 February 2016
Reeling from a loss of $1.2 billion in profits and half of its revenue for the fourth quarter of 2015, oilfield services company Weatherford International is preparing to cut 6,000 jobs, adding to the surge of oil industry job cuts as oil prices take their toll and the market becomes “brutal”.
Job cuts are a natural response to the oil price crisis, and in Weatherford’s (NYSE:WFT) case, the pending cuts—which will take place in the first half of this year—mean sacrificing 14 percent of its workforce after revenues slid 46 percent to $2 billion at a time when demand for oil equipment and oilfield services slumps.
This is only the latest in a series of cuts for Weatherford, which will have trimmed its workforce by 20,000 members once this new round of cuts are enforced. Twenty Weatherford facilities have also been closed to date, with another nine facilities slated for closure sometime in 2016.
Following the losses that have piled up over two years, we see a desperate pattern: In the fourth quarter of 2014, Weatherford had posted losses of $475 million, followed by losses a year later of $1.2 billion, prompted mainly by a 60 percent drop in North American sales.
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