Two days ago, my oil and natural gas contact network allowed me access to an internal Halliburton (NYSE:HAL) document that was sent out by Halliburton President Jeff Miller to the company-wide employee base.
This internal memo summarized the commodity pricing downturn driven structural pressures that the company is under as well as cost reduction measures HAL would take to help remedy some of the structural stress pressing down on its share price. Of course, Halliburton is also in the midst of acquiring Baker Hughes (NYSE:BHI), which has provided its own equity pressure addition in the form of short selling coming from parties doubting the success of the transaction, as well as those hedging the merger spread.
Since I published this memo for public viewing, and it was immediately sent out to my Seeking Alpha follower base via Seeking Alpha's new contributor messaging function, Suzanne Edwards of the Houston Business Journal hasconfirmed with a Halliburton spokesperson that the memo is accurate and was sent out by Miller.
The spokesperson, from what I gather from Edwards' reporting, did not confirm or deny the memo-stated "two week" window before layoffs would start. That said, I've since come to find out from members of my oil and natural gas network that Halliburton has blocked off time today (September 24, 2015) for "HR people" to begin "addressing" certain working verticals within the Houston office. From my understanding, these "meetings" are not limited to any single division within the local area. I've also come to find out that at least some international layoffs have taken place over the last two days (since Monday, September 22, 2015). A very credible source of mine has told me Halliburton could let go up to 20,000 employees on a global basis when all cuts have been finalized. So, while the memo did state that workers being cut would receive notification over the next "two weeks," it appears that the cutting has already started. Again, this closely follows Williston Herald confirmed layoffs in North Dakota from just a few days ago.Continue reading by clicking here.
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