Subject: EP: Baker no more" Hughes"...buang 1500 staff
Baker Hughes said Monday it has begun laying off nearly 4 percent of its global work force, including some employees in Houston, making it the latest major oil field services company to announce cuts in response to building industry headwinds. Under a program that started Monday, the Houston-based company will cut 1,500 of its 40,000 employees over the next couple of weeks, Gary Flaharty, Baker Hughes' director of investor relations said Monday evening. Among those being let go will be 850 of its 17,500 employees in North America, including about 200 employees in the Houston area, he said. The company has roughly 7,300 employees in Houston. The reduction will chiefly affect the company's drilling and evaluation division and its well completion unit, which have been hardest hit by a recent pullback in oil and gas activity in North America, Flaharty said. The region accounts for 42 percent of the company's revenue. That pullback accelerated sharply in late 2008 after oil prices plummeted below $40 a barrel from a July peak of $145 a barrel and as energy companies began cutting capital spending on exploration and production projects. Any downturn in such spending hurts firms like Baker Hughes, which work on a contract basis for oil company customers to provide seismic surveying, drilling, well-monitoring and other services. The recent drop in oil and gas drilling activity has been especially pronounced, and is being compared to past industry slumps in 2001, the late 1990s and the mid-1980s. In the U.S., the drilling rig count has fallen about 25 percent from its peak of 2,031 in early September, and analysts predict it could decline further in 2009. "We expect the count to continue to slide in the coming months, perhaps by another 400-plus rigs, given the extreme oil and gas price weakness," New York-based research firm CreditSights said in a report last week. Oil field services companies have also reported project delays and cancellations in Russia, the Middle East and other regions that had been key drivers of the energy boom in recent years. Amid such uncertainty, Baker Hughes did not rule out the prospect of more cuts beyond those outlined Monday. "As we go from here, we'll continue to monitor activity levels, and we'll make additional adjustments if required," Flaharty said. "We want to make sure that we do what we need to for the short term and at the same time make sure that Baker Hughes emerges as a stronger competitor on the other side of the downturn." He said there is no specific timeline for deciding whether additional cuts will be made but that it will depend on market conditions. Other Companies On Friday, Schlumberger, the world's largest oil field services company, announced a 17 percent drop in fourth-quarter earnings and said it would cut 5 percent of its global work force, or about 5,000 jobs. Up to 100 employees will be laid off in Houston. Halliburton, the No. 2 player, said Monday its earnings fell 32 percent in the fourth quarter, and it would be making an unspecified number of job cuts. Meanwhile, Weatherford International, the fourth-largest oil service provider behind Baker Hughes, said despite a 5 percent quarterly profit gain, it was also seeing more signs of the industry downturn. Baker Hughes will report fourth-quarter and full-year 2008 earnings on Wednesday. The layoff program, however, will be accounted for in the first quarter 2009 results, Flaharty said. He declined to speculate how much the company is expected to save. -- Sent from my mobile device Dongeng anget : http://rovicky.wordpress.com/2009/01/27/melihat-evolusi-jalur-gaza-dari-peta/ -------------------------------------------------------------------------------- PP-IAGI 2008-2011: ketua umum: LAMBOK HUTASOIT, [email protected] sekjen: MOHAMMAD SYAIFUL, [email protected] * 2 sekretariat (Jkt & Bdg), 5 departemen, banyak biro... -------------------------------------------------------------------------------- tunggulah 'call for paper' utk PIT IAGI ke-38!!! akan dilaksanakan di Semarang 13-14 Oktober 2009 ----------------------------------------------------------------------------- To unsubscribe, send email to: iagi-net-unsubscribe[at]iagi.or.id To subscribe, send email to: iagi-net-subscribe[at]iagi.or.id Visit IAGI Website: http://iagi.or.id Pembayaran iuran anggota ditujukan ke: Bank Mandiri Cab. 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