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Another oilfield service provider has announced major layoffs due to slumping oil prices and this one will affect thousands of workers.
The news from Baker Hughes Inc. and Halliburton Co came down Tuesday morning as fourth quarter results were released.
Photo Credit: Baker Hughes
"Our fourth quarter results punctuate a record year for our company in 2014,” said Martin Craighead, Baker Hughes Chairman. “We delivered very strong growth in revenue, earnings and free cash flow during the fourth quarter. In spite of increasing concerns of challenging market conditions, we remained focused on achieving the performance objectives that we laid out last year.”
“For the full year 2014, Halliburton reported record revenue and operating income for the total company, as well as revenue records for both divisions and 12 out of 13 product lines,” added Dave Lesar, Halliburton Chairman. “Compared to our primary peers, the company once again delivered industry-leading total company revenue growth and returns in 2014.”
Despite the profitable year, both companies will be laying off thousands of workers as Lesar notes that 2015 will be a challenging year for the industry.
Photo Credit: Halliburton Facebook
“As a result of the weakening outlook, during the fourth quarter of 2014 we took a $129 million restructuring charge to temper the impact of anticipated activity declines,” explained Lesar. Halliburton has successfully weathered multiple industry cycles. s. We are confident that we have the right people, technology, and strategies in place to outperform throughout this cycle too, and emerge as a stronger company.”
Halliburton employs more than 80,000 people and is represented in 140 nationalities in approximately 80 countries including Canada. Baker Hughes is currently being acquired by Halliburton, in a $35 billion deal, and approximately 7,000 employees will be laid off. Both companies have a huge presence in Canada, specifically Fort McMurray.
KelownaNow.com has reached out to both companies to find out which regions will be affected by the layoffs. We will update the story with more information once that is released.
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