Giant oilfield providers supplier Schlumberger is chopping round 21,000 jobs as a response to one of the crucial difficult quarters in over a decade affected by the coronavirus pandemic and the oil value disaster.

In its quarterly report launched final Friday, Schlumberger stated it could pay over $1 billion in severance to the 21,000 workers affected by this choice.

This is round a fifth of Schlumberger’s complete workforce.

The $1 billion cost is a part of a $three.7 billion impairment cost the corporate has taken within the second quarter of the yr.

The overwhelming majority of this severance cost is predicted to be paid throughout the second half of 2020, Schlumberger stated.

Houston Chronicle experiences that this transfer signifies that Schlumberger is lowering its workforce to a dimension not seen for the reason that rise of the shale revolution greater than 10 years in the past.

As beforehand reported, Schlumberger’s lack of $2.47 per share in 2Q 2020 compares with revenue of 35 cents per share in the identical time final yr.

Revenues fell from $eight.26 billion in Q2 2019 to $5.35 billion primarily as a result of North America exercise drop and Covid-19 associated discount within the worldwide markets.

Schlumberger CEO, Olivier Le Peuch, stated: “This has most likely been probably the most difficult quarter in previous many years”.

Looking forward, Le Peuch stated: “Looking on the macro view within the near-term, oil demand is slowly beginning to normalize and is predicted to enhance as authorities measures help consumption. However, subsequent waves of potential COVID-19 resurgence pose a detrimental danger to this outlook“.

He additionally added: “We imagine the decisive and complete measures we have now taken to face the business actuality will proceed to guard our liquidity and money positions and permit us to develop our margins.

We have taken the long-term view in restructuring our firm—aligning with our clients’ workflows, empowering a lean and responsive group, and accelerating the execution of our efficiency technique, with capital stewardship, fit-for-basin, and digital as key attributes of success”.

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