Halliburton Announces Job Cuts Due to Low Oil Price

The Houston-based oil field services company said Tuesday it plans to cut between 5,200 to 6,400 jobs as oil and gas production slows down. The cuts translate to between 6.5% and 8% of the company’s 80,000 global workforce.

“We value every employee we have, but unfortunately we are faced with the difficult reality that reductions are necessary to work through this challenging market environment,” said Halliburton (HAL) spokeswoman Emily Mir.

The cuts will be across all areas of Halliburton’s operations, she added.

Halliburton announced plans to cut 1,000 jobs last month, which are included in the range announced Tuesday. Mir said the cuts are not related to Halliburton’s $34.6 billion acquisition of rival Baker Hughes (BHI).

While oil prices have rebounded in recent days, prices are still deeply depressed. Crude is currently trading at about $50 a barrel. To put that in context, oil averaged about $93 last year.
The collapse in oil prices comes as supplies are overflowing and there’s not enough demand from a weak global economy.

via CNN

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