SHARE
Image courtesy of Weatherford International.

Weatherford International said Wednesday that it’s planning another 2,000 job cuts in an effort to cope with low oil prices.

The company said in its first quarter results that it plans to further reduce its cost structure by another 2,000 in headcount and complete the closing of five additional manufacturing and services facilities.

The company did not disclose further details about the headcount reduction.

Weatherford also confirmed that expects to close another 30 operating and other facilities by the end of 2016, with a target of completing half of those closures by the end of the second quarter.

The Houston-based company said it completed 78 percent of its previously announced 6,000 headcount reduction target during the first quarter.

Weatherford also ceased operations at four of the nine manufacturing and service facilities it expects to close this year and shut down 26 operating and other facilities in North America.

The company reduced its full year capital expenditures forecast to $250 million, 63 percent lower than its 2015 spending level and 83 percent below its spend in 2014.

“During the first half of 2016, we are confronted with an unusually severe market contraction characterized by extremely low levels of customer activity and punitive pricing. We are managing our operations with more cost rationalization, cash discipline and an intensified sales drive, helping our customers improve efficiencies and economics,” Weatherford chairman, president and CEO Bernard J. Duroc-Danner said.

Weatherford’s first quarter revenue fell to $1.59 billion from $2.79 billion in the first quarter of 2015.

GAAP net loss for the first quarter of 2016 was $498 million, or a net loss of $0.61 per share.

Net loss on a non-GAAP basis for the first quarter of 2016 was $239 million, or a net loss of $0.29 per share, compared to a net loss of $33 million in the first quarter of the prior year.

The company said it was able to negotiate the renewal of its revolving credit facility and a new term loan facility during the first quarter.

“In addition, in order to safeguard our company from a protracted down cycle, during the first quarter, we successfully raised $630 million of net proceeds through an equity offering,” Weatherford added.