Schlumberger warns of more job cuts on dim outlook

NEW YORK – Schlumberger has warned of another round of layoffs as the upstream industry continues to grapple with depressed oil prices.

According to industry consultant Graves & Co, the drop-off in oil prices has now resulted in the loss of more than 250,000 jobs. Schlumberger, the world’s largest service company, has already cut 20,000 jobs.

Schlumberger announced the fresh round of layoffs on Tuesday, without disclosing the exact size of the cuts. The company did, however, say that the layoffs would incur a pre-tax restructuring charge of $350 million, indicating that thousands of positions could be on the line.

According to Schlumberger’s first-quarter 2015 results, the company took a $390 million charge in relation to reducing its headcount by 11,000 people. In its fourth-quarter 2014 results, the company reported a $296 million charge related to a headcount reduction of 9,000 people.

“In this environment visibility continues to be considerably reduced and we will need to manage the company on a quarter-by-quarter basis,” Patrick Schorn, Schlumberger’s president of operations, said during a speech in New York. “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.”