Oilfield services company Halliburton will eliminate 5,000 more jobs – about 8 percent of its global workforce.
Ongoing market conditions led to the decision, according to a statement by Halliburton. As oil prices hover near $30 per barrel, producers struggle to remain viable. Benchmark U.S. crude sold for $33.07 on Thursday.
“We regret having to make this decision but unfortunately we are faced with the difficult reality that reductions are necessary to work through this challenging market environment,” company spokeswoman Emily Mir said in email. “We thank all impacted employees for their many contributions to Halliburton.”
Halliburton currently employs about 65,000 workers. At its peak in 2014, Halliburton employed more than 80,000 people. Company shares rose 4 cents Thursday, closing at $32.50.
Other major oil and gas companies have struggled to turn profits. Recently, Schlumberger said it will cut 10,000 jobs.
Halliburton did not reveal what positions will be affected. Speculation is that U.S. workers will be hit the hardest as demand for hydraulic fracturing wanes.
Last week, Baker Hughes reported the number of rigs exploring for oil and gas in the United States dropped to 514. That number could drop below 500 this week. The number of active drilling rigs last fell below 500 in 1999.