The international offshore provider Schlumberger cut 8,000 jobs in Q1 2016, due to restructuring and cost reduction programs. The company extended the job cuts program, after reporting that costs to do business in North America exceeded the revenue it earned there in the quarter. Schlumberger already reduced the workforce by nearly 28% since late 2014, laying off 36,000 employees. The first three months of the year were some of the worst yet in the downturn trend of Schlumberger, as oil company customers continued to slash their spending, which forced suspension of drilling and other well work ground.
“The decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis”, said CEO of Schlumberger, Paal Kibsgaard. “We expect the current oversupply to drop to almost zero by the end of the year. We believe the oil market is in the process of balancing”, added he.
Last week, the company shrank its business in Venezuela, due to payment problems of the country’s state oil firm Petroleos de Venezuela SA PDVSA.
The North American revenue of the international offshore provider Schlumberger dropped by 55% yoy in first quarter of 2016, whereas the company’s international business dipped by 28%. The company’s net income declined by 49% yoy, but the company still has 501 million USD net profit.