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 Global oil prices have tumbled almost 60 percent since June, hitting
five-year lows as growing production and tepid global demand has
caused a supply glut and prompted oil producers to scale back
spending.
"We expect our headcount adjustments to be in line with our primary
competitors," Halliburton's Chief Operating Officer Jeffrey Miller
said on a post-earnings call on Tuesday, without giving a specific
number.
The company, which employees more than 80,000 people, said it cut
1,000 jobs in its operations in the eastern hemisphere in the fourth
quarter.
Baker Hughes, which is being acquired by Halliburton in a near-$35
billion deal, said earlier in the day it would lay off 7,000
employees.
Shares of Halliburton and Baker Hughes were down about 2 percent in
morning trading, reversing earlier gains after the companies posted
better-than-expected fourth-quarter results due to resilient demand.
The job cuts, which come days after industry leader Schlumberger NV
said it would cut 9,000 jobs, underscore the abrupt slowdown in
drilling activity seen in the past two months.
The U.S. land rig count has fallen by 250 rigs, or about 15 percent,
over the last 60 days, Halliburton Chief Executive Dave Lesar said
on the call.
Halliburton and Baker Hughes derive about half of their revenue from
North America, a region they expect to fare worse than the rest of
the world in the oil slump.
Baker Hughes said most of the workforce reduction would take place
in the first quarter, when it expects to book a one-time severance
charge of $160 million to $185 million.
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The company, which had 61,100 employees as of Sept. 30, said it was
also considering closing facilities.
Halliburton, said it took a $129 million restructuring charge in the
fourth quarter ended Dec. 31 to "temper the impact of anticipated
activity declines".
Lesar said Halliburton was committed to closing its deal with Baker
Hughes, adding that the transaction was "more compelling" now than
when it was announced in November.
In response to Schlumberger's assertion that the company could gain
market share as Halliburton and Baker Hughes integrate their
operations, Lesar said the company would not "get distracted".
"We've been through asbestos. We've been through Macondo, we've been
through the Iraq war. We're the execution company."
(Editing by Maju Samuel and Saumyadeb Chakrabarty)
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