Do you think that the merger of Halliburton and Baker Hughes might result in more layoffs? I am think that each company will purge ranks before we join each other, but that might be just my assumption. If yes, what do you think what divisions might be in danger if job reductions take place, and when would layoffs happen? Who would be more affected, Halliburton or Baker Hughes?
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Only Baker people think it is a "merger"
Hehe
Most definitely there will be a lot of layoffs when the merger gets final approval. The divisions that are overlapping will have the most and expect it to be heaviest in the weaker or lower market cap ones. E.g. Bits and D&E from BHI will mostly be untouched whereas HAL's get the axe and vice versa for PP and completions. The key and value employees will be kept regardless.
Boys, remember your buying technology you never even dreamed of having. Blue will take your seat.
Also be aware BHI has non core businesses that will need to be discarded and sold to outside interests. These businesses have nothing to do with energy services.
Just my opinion. In the field, employee retention (red and blue) will likely be based on geographic work demand and employee competence. But red sure seems to be dumping a bunch of old timers. For the "support" groups, it would make sense to retain mostly red employees. Every blue employee has to be brought up to speed on our processes and standards. That doesn't sound cost effective.
Baker will likely enforce more reduction in the support services group such as Admin, Real Estate, HR, before merge into HAL. But I would expect the technical group ain't spare as well, even in HAL. Although HAL has the edge in this since they are the one buying Baker, not vice versa.