1. Cutting 10,000 jobs
Weatherford raised its headcount reduction target to 10,000 positions, up from the 8,000 previously announced, with the bulk of the cuts coming from North America.
2. Closing or consolidating 60 facilities
The company is also planning to shut down and consolidate 60 operating facilities across North America by the end of the year. That’s in addition to the planned shutdown of seven manufacturing facilities.
3. 1Q revenue fell 25%, operating income fell 57%
Weatherford reported $2.79 billion in first quarter revenue, down 25 percent from prior quarter, while operating income slid 57 percent from the fourth quarter to $238 million.
4. 6,400 Weatherford jobs are already gone
The company said that by the end of the first quarter it had completed 6,449 terminations that resulted in expected yearly savings of over $442 million.
5. With the new terminations, the company hopes to save $640 million a year
“We expect to complete the entire revised program of 10,000 terminations by the end of the second quarter generating expected annualized savings of $640 million,” Weatherford said.
6. Weatherford’s best performance was in the Middle East, North Africa, and Asia Pacific
Operations in the Middle East, North Africa and Asia Pacific regions faired a bit better, with revenues falling only 7 percent from last quarter to $533 million, while operating income jumped 15 percent from the fourth quarter to $69 million. “Our international performance will be resilient,”Weatherford chief Bernard Duroc-Danner said. “Both Eastern Hemisphere and Latin America will show relative strengths through the 2015 market decline, and will outperform on margin growth. North America will remain very challenged.”