No surprises from Schlumberger at all as they have always adhered to the business mantras of "Headcount" and "Budget". The fall in crude oil prices coincided with their yearly budget preparations and the easy option to coping with projected revenue falls was a compensatory reduction in overall headcount. The surprising fact is that the first announcement came from the Geophysical division. Needless to say, seismic exploration is long term and R&D are essential to the future of SLB (and the entire industry for that matter). Drilling and Wireline are the divisions most affected by dropping dayrates. We should expect further announcements of more drastic cuts in the well servicing division. Yet, this is not all bad news. The merger of Halliburton and Baker Hughes will encourage SLB to open their wallet and acquire new technology and budding service companies at bargain prices. Thoughts?
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I pity the employees of any small company that gets acquired by schlumbeger - they will find they become another number in the uncaring slb system - they will telll you they are a people company but it will all be lies
I'm very glad I don't work in the oil industry any longer. I remember going through this same thing years ago. After getting laid off 3 times - twice with the same company - I knew it was time to get in another industry that's more stable. Condolences to those of you in the oil and gas industry who are sitting on the bubble, wondering if your job is next. Been there and never again. God bless.
What do you think will happen after January 2015?