Weatherford International said Thursday that it will cut thousands of jobs as part of a plan to streamline operations.
According to a transcript provided by Seeking Alpha, Weatherford International executive Christoph Bausch said the company has initiated a plan to further reduce its headcount by 3,000 positions.
As of Thursday, Weatherford has already cut 2,000 positions out of the 3,000 positions it plans to cut.
Bausch said the plan calls for a “general streamlining of our support call structure” as well as “pulling back” its U.S. pressure pumping operations, closing additional uneconomical field locations and further rationalizing its manufacturing footprint.
Bausch added that the plan also calls for “removing regional structures in the two largely deepwater dependent regions, namely Asia-Pacific and Sub-Sahara Africa, and combining them with the Middle East and Europe regions respectively.”
Bausch said those actions are expected to generate $300 million in annualized cost savings.
Bausch added that “most of the other cost reductions have been put in motion.”
Weatherford ceased operations at five additional manufacturing facilities during the fourth quarter of 2016.
Those reductions bumped the number of manufacturing facilities where the company has ceased operations up to 15 for the full year.
The company plans to close another four manufacturing facilities in the first half of 2017.
Basuch said the closures will allow the company to “strategically consolidate” its manufacturing footprint while maintaining a presence in its operating regions and retaining more capacity to handle “expected growth.”
Weatherford saw fourth quarter 2016 revenue decline 30 percent year-over-year to $1.40 billion.
The company’s fourth quarter net loss narrowed to a loss of $549 million, or a loss of $0.59 per diluted share, compared to a loss of $1.2 billion in the year-ago period.
Fourth quarter 2016 adjusted loss came in at $303 million compared to an adjusted net loss of $102 million in the prior-year quarter.
Free cash flow from operations was $171 million, thanks to working capital improvements.
The company reduced its net debt $507 million to $6.5 billion after successful debt and equity raises totaling $996 million during the quarter.