Schlumberger cut 2,500 jobs in the first quarter amid decline in profits

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As oil prices took a plunge last year, several companies have been forced to cut employees.

Schlumberger said that it has cut about 2,500 jobs in the first quarter as profits dropped amid the continued low cost of oil.

A spokesperson said that the company cut about 8,000 employees but also converted about 5,500 contractors to employees in the first quarter, equaling out to 2,500 jobs.

However, there was no word on which locations were affected by the cuts.

“During the first quarter of 2016, the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis,” said CEO Paal Kibsgaard in a statement.

The company reported first-quarter net income of $501 million, or 40 cents per share.

A year ago, the company earned $975 million, or 76 cents per share, on total revenue of $10.25 billion.

“In the midst of a deepening downturn that has already entered its seventh quarter, we are still optimistic and confident about the medium term outlook for Schlumberger.  Our unmatched ability to generate cash in the oilfield services industry allows us to capitalize on a variety of significant business opportunities while continuing to return cash to our shareholders through dividends and stock buy-backs. This, combined with the strategic moves we have made that include the Cameron merger, leaves us very well positioned once markets start to recover,” Kibsgaard said.

 

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