Oil field services firm Schlumberger announced Thursday it plans to ax another 11,000 workers, kicking off what could be a second major wave of layoffs across the oil industry.
The move will bring Schlumberger’s layoffs up to 20,000 employees, roughly 15 percent of its workforce, since it began paring back its payroll earlier this year to cope with low oil prices. The nine-month oil slump has cost the energy industry more than 120,000 jobs so far, according to oil field staffing firm Swift Worldwide Resources.
Oil equipment companies have been forced to fine-tune their workforce as they promise oil companies up to 20 percent in price reductions for rental tools, equipment and other services, said James Wicklund, an analyst at Credit Suisse.
Wicklund said it’s likely another wave of layoffs will sweep through the service industry after this year’s first in recent months, when major players announced more than 40,000 workers would be tossed from the oil-tool suppliers. It’s even possible a third wave will take place in the third quarter, albeit smaller than the first two.Read more by clicking here.
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