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Schlumberger cuts 8,000 jobs in first quarter.

Schlumberger eliminated 8,000 jobs in the first three months of 2016, bringing the workforce of the world's largest oil field services company down by nearly one-third since cuts began in late 2014. Schlumberger, headquartered in Houston, Paris and The Hague, now has cut 40,000 jobs with more cuts expected during the second quarter, Chairman and CEO Paal Kibsgaard said.

Schlumberger's worldwide headcount only fell from 95,000 to about 93,000 but the company reclassified 5,500 contractors as permanent employees, so the overall reduction was 8,000 employees, Kibsgaard said.

"The decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis," he said, citing in addition the United States, production cuts in Mexico, Colombia, China and the United Kingdom. However, Kibsgaard is confident the industry will begin to rebound in 2017, if not sooner.

"We expect the current [oil] oversupply to drop to almost zero by the end of the year," Kibsgaard said, noting that North America is leading the way in production cuts. "We believe the oil market is in the process of balancing."

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Title Annotation:IN THE NEWS
Publication:Pipeline & Gas Journal
Date:Jun 1, 2016
Words:194
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