Another 8% or 5,000 of Halliburton's workers will lose their jobs as the company continues to face crisis confronting the US oil industry.
The Houston based energy company told CNNMoney late this week that the job cutting will take place across their sites across the globe and will take in the next several weeks.
"Our industry has turned down faster than anyone ever expected," Halliburton CEO Dave Lesar and President Jeff Miller stated in a memo to employees.
According to Lesar and Miller, the continuous crisis faced by the US oil industry has made one thing clear: business opportunities will be "much worse than anticipated" coming into the year.
The workforce of Halliburton will be down to 26,000 to 27,000 as the result of the job cut. This is part of their cost-saving efforts. Other efforts include consolidation of facilities in 20 countries and the close down of operations in two countries.
This is a situation that is not only faced by Halliburton but by other oil drilling companies as well, including Schlumberger and Baker Hughes. These companies have let go of thousands of workers in the last one and half years.
Another 44 small oil service companies have filed for bankruptcy since the last part of 2014. "The drilling business they do get has been won with steep discounts amid the downturn. For instance, Halliburton said its U.S. customers will spend about 50% less in 2016 than last year."
It can be recalled that Velenzuela has already called for a joint action by all oil-producing states to address the crisis. Velenzuela is a part of South America and a member of the Organization of the Petroleum Exporting Countries.
Meanwhie, Barack Obama is set to propose a bill that will impose an oil tax of US$10 per barrel of crude oil.
The petroleum tax will be used to fund the country's renovation of its ageing transportation infrastructure. The tax is a part of President Obama's 21st Century Clean Transportation System.
