It turns out oilfield services isn’t a good place to be during epic crude downturns.
Halliburton – which cut thousands upon thousands of jobs in 2015 – is back it, announcing an additional 5,000 layoffs on Thursdsay. The cuts amount to 8% of the company’s remaining workforce. We say “remaining” because as CNN notes, “the latest pink slips bring Halliburton’s job cut tally to between 26,000 to 27,000 since employee headcount peaked in 2014.”
The company will also look to sell assets (because everyone wants the kind of assets Halliburton owns with oil at $30) and is projecting $1.6 billion in capex this year.
“We regret having to make this decision but unfortunately we are faced with the difficult reality that reductions are necessary to work through this challenging market environment,” Emily Mir, a spokeswoman, said Thursday in an e-mailed statement. “We thank all impacted employees for their many contributions to Halliburton.”
Revenue plunged 42% in Q4 the company said last month hit, of course, by the ongoing oil rout. “Let me sum it up,” CEO Dave Lesar said on the call, “2016 is shaping up to be one tough slog through the mud.”
For 5,000 now jobless workers, this year will be a “tough slog through the mud” as well.
On the bright side, the stock is ripping:
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