Layoffs, pay cuts loom as Schlumberger plans to cut up to 30 percent from budget Sergio Chapa , Houston Chronicle March 24, 2020 Updated: March 24, 2020 12:23 p.m. Job completion bonuses are nice, if you are eligible to receive them. How employees distribute their unpaid days off — equal to roughly 20% of their time — varies by team. Apache Corp. is also laying off employees in Midland, Texas. Schlumberger last week said it would reduce its 2020 capital spending budget by 30% due to the price crash, joining a host of major energy companies … The company, he said, also stands to save $25 million a quarter from first-quarter layoffs. Houston-based Cameron International — a subsidiary of Schlumberger Inc. (NYSE: SLB) — plans to close two Texas facilities later in May, which will result in a round of layoffs. Thursday's job cuts were announced on top of 9,000 layoffs already planned in January. "I was averaging 69 hours a week. According to three employees, the furloughs affect most if not all staff, both hourly and salaried, within the company. At the end of last year that number was down to 105,000. That’s down from $11.98 billion in 2018, according to the company’s year-end financial report. A 20 percent cut to former CEO Paal Kibsgaard’s 2019 salary would have been $400,000, which would have been a 1.8 percent decrease in his overall compensation of $22.25 million for the year, according to the company’s most recent proxy statement. Published Apr 9, 2020 at 9:58 am | Updated Apr 9, 2020 at 11:25 am 1 min to read Schlumberger, an international oil field company with three offices in … Schlumberger CEO Olivier Le Peuch commented, “First-quarter revenue of $7.5 billion declined 9% sequentially and 5% year-on-year as the unprecedented global health and economic crisis sparked by the COVID-19 pandemic increasingly impacted industry activity during the quarter. The Houston-based company — which sells technology and services for oil production and exploration — is not alone in taking aggressive actions in recent weeks to cut spending as oil prices collapse to 20-year lows. It's nobody's fault.". Prompt cost reduction measures through headcount rationalization, furloughs, and lower manufacturing costs contributed to … Nearly all major oil and gas companies have slashed spending for the year, many have cut staff, and several have axed their prized dividend payments, including the supermajor Shell. The company said the programs are "anticipated to run over the next couple of months.". Schlumberger is a large oilfield services company. An increase in production among OPEC countries is expected to produce a glut of available product, while social distancing measures taken in response to the COVID-19 pandemic are slicing deep into demand for transportation fuels. In a statement to Business Insider, Schlumberger confirmed that it's placing some employees on furloughs, without providing details. Schlumberger chief executive Paal Kibsgaard said the latest round of cuts was caused by a severe decline in North American land drilling and by reduced investment by oil companies overseas. Halliburton went from $25.48 in 2009 to … In late March, the research firm Rystad Energy estimated that more than a million oilfield service jobs, or 21% of the workforce, would evaporate as a result of this downturn. "We'll continue to decisively implement structural change during the second quarter, both in North America and internationally to align our cost base with the anticipated short-term and second half activity outlook with full understanding that the pace and scale of decline is still uncertain but would be more abrupt than during any recent downturn," Le Peuch said. But they don't exactly come as a surprise. Like many large corporations, salary makes up the minority of Schlumberger’s executive compensation, however. Schlumberger was already entering this downturn with more debt, relative to the last oil downturn around 2016, the Wall Street Journal reports. According to two of the employees, hourly staff in North America — who represent the bulk of Schlumberger's North American workforce — have been hit the hardest. The Layoff discussion - User says: ``Schlumberger Layoffs 2020'' regarding Schlumberger Ltd. Schlumberger is cutting 21,000 jobs in response to the pandemic and related oil crisis. "It was a shock," said a Houston-based employee who was recently laid off. The Schlumberger memo reveals that in one furlough program — which the company calls involuntary — employees are furloughed for five days per month. This double black swan event created simultaneous shocks in oil supply and demand resulting in the m… CEO Olivier le Peuch says the second quarter “has probably been the most challenging quarter in the past decades.” The company has recorded huge drops in revenue, which fell by 35% year-on-year and 28% sequentially. Meanwhile, Houston-based Halliburton Co. is furloughing 3,500 Houston employees, who will alternate weeks working and won’t be paid for the weeks they’re off. The furlough is just one measure Schlumberger is taking to cut spending. Houston-based Noble Energy Inc. is also making cuts to employment and hours among its workforce. “To best position our company in the current environment, Halliburton is implementing a mandatory furlough for employees at its North Belt campus in Houston beginning 23 March. 5:41 PM, May. As of 2018 the company employs approximately 100,000 people and is present in 80+ countries. Schlumberger is cutting pay for some workers, as well, according to another letter that Business Insider reviewed. Subscribe to Power Line, Business Insider's weekly energy newsletter. The oilfield service industry is typically the first sector to suffer from the collapse of oil prices, experts told Business Insider. The company's stock has tumbled 60% this year. In recent weeks, Schlumberger has slashed its dividend by 75%, and its executives and senior management team have reduced their pay by 20%, the company confirmed. The company lost more than $10 billion last year and it was already failing to stay afloat with oil at $50 a barrel, per the Journal. Connect with friends faster than ever with the new Facebook app. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. Shares of Schlumberger were up … Schlumberger last week said it would reduce its 2020 capital spending budget by 30% due to the price crash, joining a host of major energy companies that have slashed spending amid the twin supply and demand shock. In addition to the furlough, their wages have been cut by about 15%, they said. That is expected to last for the next couple of months and will undoubtedly affect the company’s work operations in Oklahoma. Maps of counties in the STACK play showing townships and ranges, enormous pressure on both the supply and demand side of the industry, Halliburton Co. is furloughing 3,500 Houston employees, making cuts to employment and hours among its workforce, is also laying off employees in Midland, Texas, also announced a multibillion-dollar spending cut March 23, Schlumberger produced $10.84 billion in 2019 North American revenue. The company will also institute furlough programs in some of its business lines. In a letter sent to all North American employees that was obtained by Business Insider, the company said it was implementing two furlough programs for its North American staff starting on April 12. Executives at Schlumberger, the largest oilfield service company in the world, are taking pay cuts while the company implements layoffs and furloughs for workers in … Schlumberger has already cut its spending plan for 2020, reducing it by 30 percent from 2019. The company’s total 2019 revenue of $32.92 billion was basically flat compared to 2018. Business Insider has verified their identities. "Support personnel worldwide will adopt modified work schedules resulting in salary reductions subject to applicable country laws," the company said in the statement. July 24, 2020 at 11:15 AM EDT - Updated July 24 at 11:15 AM (AP) - Schlumberger is cutting more than 21,000 jobs as the global coronavirus pandemic quashes demand for energy and o Meanwhile, the company’s senior management, including its executive team, will take 20 percent cuts to their base salary, Felix said. The 21,000 jobs correspond to almost […] PARIS: Oil services group Schlumberger expects to lay off more than 21,000 employees — a quarter of staff — it said on Friday, also reporting a US$3.4 billion quarterly loss. The company implemented a furlough program in Houston earlier this year ... North America saw the biggest drop in revenue from Q1 2020 … Schlumberger is the world’s largest oil field services company and has its primary offices in Houston, Paris, London and The Hague. Schlumberger grows global headcount despite US layoffs Oil-field service giant Schlumberger grew its global head count in 2019 despite finishing the … The news was delivered to them in a letter that appeared to use a template for promotions. "They sent the email as if it was a promotion," one employee, based in Midland, Texas, said. "Before, we would do 12-hour days," the person said. The company will accelerate efforts to restructure its land-based operations, which will include a reduction in its headcount, Schlumberger spokesperson Joao Felix said in an email to the Houston Business Journal. "That's management. They don't pay attention.". Schlumberger to ramp up job cuts, furloughs Executives to take voluntary 20% reduction in base salary amid price drop, Covid-19 31 March 2020 21:33 GMT Updated 31 March 2020 21:33 GMT "For some people, it's a day in the week and for some people, it's two weeks [straight] in a total of ten weeks," one Houston-based employee said. 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