Houston oil mammoth Schlumberger to slash 21,000 jobs amid pandemic oil rout

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Houston oil mammoth Schlumberger to slash 21,000 jobs amid pandemic oil rout

Late on Friday, Schlumberger, the Houston, Texas-based American multinational oilfield services company said in a statement that the oil industry giant which had upended the United States as the world’s leading oil producer, would slash 21,000 jobs or roughly 20 per cent of its entire workforce, as the global-scale pandemic-led retreat in energy futures’ prices had been taking a heavier toll on the world’s largest oilfield services provider.

Aside from that, the company had also told at its statement that it would lay off more than $1 billion in golden handshake pay offs, nonetheless, the Schlumberger job cuts announced earlier on Friday had rolled back the number of employees in the company close to the level before the fracking boom in US energy industry had transformed the world’s No.

1 economy into the globe’s largest energy producer. In point of fact, Schlumberger’s job cuts come over the heels of a freaking retreat in US shale industry amid a multi-year low oil and natgas futures’ prices, while a pioneer in the US energy boom, Chesapeake Energy had filed for a chapter 11 bankruptcy protection earlier last month.

Schlumberger facing the most challenging quarter in decades, says CEO Le Peuch

Besides, as a steep nosedive of crude oil and natgas futures’ prices this year due to a sharp fall in demands caused by the global pandemic outbreak had been forcing a number of US shale operators to trim the numbers of drilling rigs to record lows, followed by the Schlumberger statement to slash over 21,000 jobs, the company Chief Executive Olivier Le Peuch was quoted saying to the reporters, “This has probably been the most challenging quarter in past decades.

” Since almost all of the major energy industry behemoths had been crippled due to the forced business closures and travel restrictions, which in effect had weighed heavily on energy producers, more than 40 oil producers had filed for bankruptcy protection this year.

Concomitantly, crude oil futures’ prices in tandem had shrugged off 33 per cent this year, while natgas futures has been foundered over 17 per cent thus far.