The COVID-19 pandemic and the resulting crude oil price crisis have forced leadership at Schlumberger to make more major changes.
Schlumberger is planning to bear about $1.4-billion charges related to the ongoing restructuring and associated job cuts, said its CEO Olivier Le Peuch. Notably, the one-time charge will be in the range of $1.2 billion to $1.4 billion.
Per the restructuring initiative, the company will divide its 17 product lines into four units. The oilfield services behemoth will also restructure its global organization across five major oil basins.
Peuch believes that more layoffs and the restructuring program will help the company survive the coronavirus-induced downturn in the oilfield service business. With the pandemic hurting global energy demand and keeping oil in the bearish territory, explorers have little incentive to award contracts to oilfield service players for upstream operations.
On the brighter side, the restructuring will help Schlumberger save roughly $1.5 billion in costs every year, added Peuch. The company is reportedly looking to augment the use of automation and digital technologies in its field activities, highlighting its focus on lowering costs and boosting the bottom line.
Source: Yahoo News