The company will pay more than $ 1 billion in compensation benefits.
The job cuts announced on Friday, about a quarter of its entire workforce, bring the number of people employed by the world’s largest oil field services company closer to the start of the oil and gas fracking boom that overturned the markets. energy markets and put the United States on top.
SEE ALSO: Oil and gas experts believe more layoffs could occur soon due to pandemic
Chesapeake Energy, a pioneer in fracking, sought bankruptcy protection last month.
“This has probably been the most challenging quarter in recent decades,” said CEO Olivier Le Peuch.
Crude oil prices have fallen 33% this year, and natural gas has fallen 17% as much of the world has taken refuge from the coronavirus.
Almost all the major power users have been paralyzed due to the crash. On Thursday, American Airlines recorded a loss of more than $ 2 billion, and Southwest Airlines said it lost $ 915 million. That brought the combined second-quarter loss of the country’s four largest airlines to more than $ 10 billion.
Schlumberger Ltd. said in a regulatory filing on Friday that the vast majority of the severance fee is expected to be paid in the second half of the year.
The company said on Friday that second-quarter revenue fell 35% and lost $ 3.43 billion.
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Schlumberger cuts jobs in Houston, closes 2 facilities
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