Schlumberger, the oil field services conglomerate, was forced to slash 10,000 jobs because of plunging oil prices. The oil industry giant suffered losses in the past three months leading its officials to take drastic remedial action.
Schlumberger revealed that it suffered a net loss in that time period in the amount of $1 billion. This is the firm's first quarterly loss in 12 years.
Paal Kibsgaard, Schlumberger CEO, said that their revenues fell by 39 percent to $7.7 billion. He warned that there is no apparent sign that the price of oil will recover soon.
With declining revenues, the company took a $1.46 a share charge in view of the firm's restructuring as a reaction to the continuing oil market downturn.
The reported loss of the biggest oilfield service provider in the world is a massive $1.02 billion, or 81 cents per share. This is huge considering its $302 million profit last year, translated into 23 cents per share.
Previously, the company has already laid-off 20,000 workers less than two years ago. With the slashing of 10,000 additional jobs, the company appears to have completed the first major round of the company's restructuring.
The giant firm has authorized a 50 cent quarterly dividend in addition to offering a $10 billion share buyback program. Their $10 billion repurchase plan approved in 2013 is also about to be finalized.
A company report stated: "Negative market sentiments intensified in the fourth quarter, with oil over-production continuing and extending the bearish trend in global inventories."
It added that the dramatic drop in oil prices forced their investors to cut back their investments even more. This resulted in "unscheduled and abrupt activity cancellation," the report said.
It seems that Schlumberger is not the only oil service company affected by the dramatic fall of oil prices. The number of oil and natural gas drilling rigs operating in the United States has dropped to 698, from 1,840 rigs in 2014.
