Oil Price Shock Schlumberger cuts jobs dramatically

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The oil price crash in 2014 came as good news to consumers who enjoyed lower fuel and energy prices since then. At the same time, firms operating in the oil industry and their employees are paying its first tolls to countervail the decrease in revenues.

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Schlumberger Limited, one of the largest players for oilfield services in the world, has been forced to make certain changes in its operations in a bid to control costs as a strategy of responding to the free fall of the oil prices as announced by the Chairman and CEO, Paal Kibsgaard.

One of these changes is a further reduction of its labour force by 15% this year, which equals a layoff of approximately 11,000 people. In January alone, 9,000 people had be laid off.

The price fall from $107 per barrel in June to $54 per barrel (Brent) was just too significant and surprising to the company as to most other players as well (Crude Oil Brent price on April 27th, 2015: $64.77 per barrel)

Schlumberger was founded in 1926 by two French brothers Conrad and Marcel Schlumberger with headquarters in Houston and a presence in more than 85 countries employing 115,000 people worldwide!

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