The Houston-based oilfield services major, Schlumberger, said it will further reduce its workforce in light of expected reduced activity for 2016.
As a result, Schlumberger currently expects to record a pre-tax restructuring charge in the fourth quarter of 2015 that is estimated to be approximately $350 million.
“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 and streamline our support structure,” said Patrick Schorn , president, operations & integration of Schlumberger, at the Cowen and Company Ultimate Energy Conference on Tuesday in New York.
“Our business performance in both North America and internationally has displayed considerable resilience as the market continues to decline. In this environment visibility continues to be considerably reduced and we will need to manage the company on a quarter-by-quarter basis. This will mean a further reduction in the size of the workforce in the fourth quarter as we adjust resources to lower activity levels, which will result in restructuring charges in addition to a charge related to our global manufacturing and distribution network. We will also be conducting an asset impairment test in the fourth quarter and are in the process of working through all of these items,” concluded Schorn.
Schlumberger has already cut some 20,000 jobs in order to adjust to downturn in oil prices and lower E&P spending, however, this latest announcement did not specify any approximate numbers.