The worlds largest oil service company cant hold up, and sherenberg has laid off more than 20000 people

 The worlds largest oil service company cant hold up, and sherenberg has laid off more than 20000 people

In order to cut costs, the worlds largest oil service company will lay off more than 20000 people.

On July 24, local time, Schlumberger released the second quarter results, which showed that the second quarter revenue was $5.356 billion, a year-on-year decrease of 35%; a loss of $3.43 billion, a profit of $492 million in the same period last year.

Schlumberger announced at a earnings release that 21000 jobs would be cut and more than $1 billion in severance payments would be paid, Reuters reported. The scale of the layoff accounts for about a quarter of the total number of employees of the company.

According to the official website, Schlumberger currently employs about 85000 people worldwide, and its business is distributed in more than 120 countries and regions.

After the layoffs, Schlumbergers workforce will be reduced to pre US shale oil and gas boom levels.

Olivier Le peuch, chief executive of Schlumberger, said in the announcement that this may be the most challenging quarter in the past few decades, and the companys overall revenue has declined significantly due to the unprecedented decline in oil field business in North America.

In response to the severe situation in the global oil and gas industry, Schlumberger has previously announced that it will cut its 2020 annual budget by more than 30%, and will take measures such as layoffs and salary cuts in North America.

Schlumberger said in the second quarter results that the companys overall capital expenditure will be reduced to $1.5 billion this year, 45% less than the same period last year.

Global oil and gas producers have cut their spending by about 40% this year due to a sharp drop in energy prices and a shutdown caused by the new outbreak, Reuters reported.

Under the general trend of the industry, the business performance of the other two oil service giants is not optimistic.

Halliburtons total revenue in the second quarter was $3.2 billion, a year-on-year decrease of 45.8%, and a net loss of $1.7 billion, with a profit of $57 million in the same period of last year.

Baker Hughes, another oil service giant, had a total revenue of $4.7 billion in the second quarter, a year-on-year decrease of 21%; a net loss of $52 million, compared with a profit of $271 million in the same period of last year.

According to the Wall Street Journal, Halliburton is also cutting jobs, but did not disclose the number of layoffs. At the end of the second quarter, Halliburton had more than 40000 employees; at the end of the fourth quarter of last year, it had 55000 employees.

In the era of low oil prices, oil and gas producers have a hard time. Up to now, star listed companies such as Chesapeake energy, whiting petroleum, diamond subsea drilling and Yuma energy have declared bankruptcy.

In June, BP announced that it would cut 15% of its staff worldwide, bringing the total to about 10000, and devalued assets by more than $10 billion.

Shell, an international oil and gas giant, also plans to reduce the size of its employees by voluntary resignation and layoffs, and substantially reduce the scale of external recruitment, and does not rule out the plan of further layoffs in the future.

Shell made its first dividend cut since World War II in the first quarter and announced a $22 billion write down in the second quarter.

According to CNBC, the second quarter of this year will be the lowest point of the whole year for the oil and gas industry, and the results of various companies are quite weak, according to Stuart Joyner, an analyst with market research firm Redburn.

Source: interface news Author: Peng Qiang, editor in charge: Wang Xiaowu_ NF