The Houston-based company, Halliburton Co., is planning an immediate cut of 1,000 jobs in the Eastern Hemisphere.
According to Halliburton, the job cuts are unrelated to the company’s pending $35 billion purchase of Baker Hughes Inc., and it does not seem that any cuts will be made due to the transaction.
Halliburton spokeswoman Emily Mir commented on the job cuts the company is enforcing:
The decision to eliminate jobs is never easy … Our talented workforce is the foundation of everything we accomplish, and we place the highest value on the commitment and hard work that our employees dedicate to building our company. Yet, we believe these job eliminations are necessary in order to work through this market environment.
During the Capital One Southcoast Energy Conference, Halliburton’s Chief Financial Officer Mark McCollum mentioned that the company was starting to look at ways to make adjustments as oil prices decline:
We are right now anticipating a restructuring charge in the quarter, probably to the tune of about $75 million as we trim out some headcount and activities around the world.
Although Halliburton has not experience any operational impact in North America, it has started seeing changes in the Eastern Hemisphere due to low oil prices. McCollum expanded on the changes occurring due to oil prices dropping:
It’s interesting that some of the initial impact has been more in the international area than it has been in North America … And I just think you sort of recognize that in a lower oil price environment there’s nowhere to hide; it is going to affect all markets equally, and North America will probably be adjusting as we go into 2015.