Schlumberger To Lay Off 5%
Houston- and Paris-based Schlumberger plans to lay off 5% of its North American work force amid a downturn in oil and gas drilling.
The cuts started Wednesday. The company will cut up to 1,000 administrative, operations and contractor jobs from its 19,000 employees in North America. About 100 jobs will be cut in Houston.
The cuts are a response to the reduced level of activity within the oil field services sector and is not ruling out additional cuts if the market does not improve
In December, Schlumberger warned that 2008 profits will be below analysts’ expectations because of the worldwide economic slowdown and its impact on oil and gas exploration and production spending.
“We have been consistent in our view that our results would be affected in the event of a severe global economic downturn, which we are now facing,” said chairman and chief executive Andrew Gould. “However, we still maintain that in the longer term, the fundamentals of our industry are sound.”
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