Houston-based Schlumberger warned Tuesday that it will conduct a new round of layoffs as demand for drilling services remains weak.
According to Reuters, the services company will take a pre-tax restructuring charge of about $350 million tied to the layoffs in the fourth quarter.
The company has not yet disclosed how many employees will be affected or a timeline for the reductions.
Schlumberger’s president of operations Patrick Schorn said at a speech on Tuesday that a recovery in activity levels has been “pushed out in time,” Reuters said.
“The latest leg down in activity has led us to again evaluate our staffing levels against expected activity. Following which, we will further right-size the organization based on the activity outlook for 2016,” Schorn said.
The latest round of layoffs will add to the nearly 11,000 jobs Schlumberger cut in April in response to a prolonged drilling slump.
The company has cut about 20,000 jobs this year, Reuters added.
Low oil prices and reduced drilling activity dragged Schlumberger’s third quarter income down by nearly 50 percent from a year ago.
SLB income from continuing operations fell to $989 million, a 49 percent year-over-year drop, while pre-tax operating income dipped 11 percent from the previous quarter to $1.52 billion.
Cameron stockholders will meet on December 17 to consider and vote on the proposed adoption of the agreement and merger plan.
Schlumberger and Cameron expect the merger to close in the first quarter of 2016.
The companies said they will continue to operate as separate and independent companies and continue to serve their respective customers until the merger is complete.