NewsNational News

Actions

Schlumberger slashes 21,000 jobs amid pandemic oil rout

Schlumberger-Job Cuts
Posted at 10:43 AM, Jul 24, 2020
and last updated 2020-07-24 11:43:23-04

Schlumberger is cutting more than 21,000 jobs as the global coronavirus pandemic quashes demand for energy and oil prices are routed.

The company will pay more than $1 billion in severance benefits.

The job cuts announced Friday, about a quarter of its entire workforce, puts the number of people employed by the world’s largest oilfield services company close to where it was at the start of the oil and gas fracking boom that upended global energy markets and put the U.S. on top.

Chesapeake Energy, a pioneer in fracking, sought bankruptcy protection last month.

“This has probably been the most challenging quarter in past decades,” said CEO Olivier Le Peuch.

Crude prices have dropped 33% this year, and natural gas has fallen 17%, as much of the world took shelter from the coronavirus.

Almost all major users of energy have been crippled because of the lockdown. On Thursday, American Airlines posted a loss of more than $2 billion, and Southwest Airlines said it lost $915 million. That pushed the combined second-quarter loss of the nation’s four biggest airlines to more than $10 billion.

Schlumberger Ltd. said in a regulatory filing Friday that vast majority of the severance charge is expected to be paid out during the second half of the year.

The company said Friday that second quarter revenue plunged 35% and it lost $3.43 billion.

------------------------------------------------------------
Stay in touch with us anytime, anywhere.

To reach the newsroom or report a typo/correction, click HERE.

Download our free app for Apple, Android, Roku and Amazon devices.

Sign up for newsletters emailed to your inbox. Select from these options: Breaking News, Evening News Headlines, Latest COVID-19 Headlines, Morning News Headlines, Special Offers

Alexa's Daily Flash Briefing

Follow us on Twitter

Like us on Facebook

Follow us on Instagram

Subscribe to our Youtube channel