Services giant Schlumberger said Thursday that it will cut another 10,000 jobs after reporting a 39 percent year-on-year revenue decline.
Schlumberger chairman and CEO Paal Kibsgaard said the company will reduce its headcount by 10,000 positions as it braces for “extended activity weakness” in the first half of 2016.
Further details about the cuts have not been disclosed yet.
“The worsening market conditions added further pressure to a deepening financial crisis in the E&P industry, and prompted customers to make further cuts to already significantly lower E&P investment levels. Customer budgets were also exhausted early in the quarter, leading to unscheduled and abrupt activity cancellations,” Kibsgaard said.
The latest round of redundancies brings Schlumberger’s job cut total to 34,000 since November 2014, the Financial Times said.
The company took a fourth quarter $530 million in pretax restructuring charges tied to expanding its incentivized leave of absence program and reducing its workforce.
Schlumberger also took a largely non-cash $1.6 billion pretax impairment charge for fixed assets, inventory write-downs, facility closures, contract terminations and other asset impairments.
Four quarter revenues fell 39 percent year-over-year to $7.74 billion while the company’s pre-tax operating income dipped 54 percent year-over-year to $1.28 billion.
Income from continuing operations, excluding charges and credits, dropped to $819 million in the fourth quarter from $1,941 billion during the same period in 2014.
North American revenue fell 55 percent year-over-year to $1.95 billion on a pre-tax operating income of $139 million, down from $849 million in the fourth quarter of 2014.
The company’s international revenue slid down to $5.71 billion, a 30 percent year-on-year decline, on a pre-tax operating income of $1.26 billion.
Schlumberger’s drilling group booked $2.95 billion in fourth quarter revenues on a pre-tax operating income of $494 million, a 48 percent drop from the same period in 2014.
The company’s production group earned $2.67 billion in fourth quarter revenues, a 45 percent year-over-year decline, and booked a pre-tax operating income $303 million, down from $898 million in the fourth quarter of 2014.
Full year revenues declined to $35.47 billion from $48.58 billion in 2014 and full year pretax operating income fell 38 percent to $6.51 billion.
The company’s full year North America revenue fell to $9.81 billion, down from $16.15 billion in 2014, while North American pre-tax operating income dropped to $999 million compared to $3.057 billion in 2014.
Full year international revenue slid down to $25.196 billion, a 21 percent year-over-year decline, and international pretax operating income declined 22 percent year-over-year to $5.95 billion.