Oil Field Giant Announces Thousands of Job Cuts, Huge Loss.
Houston-based Baker Hughes announced Thursday morning a devastating round of cuts following a $911 million 2nd quarter loss.
The loss occurred despite a $3.5 billion payment from Halliburton following a failed merger which fell through in May after the Justice Department intervened because of anti-competitiveness concerns.
Because of that, Baker Hughes received a $3.5 billion termination fee.
Baker Hughes cut about 3,000 jobs in the second quarter, bringing its 18-month tally to 26,000 positions, including 23,000 terminations and 3,000 via attrition. Baker Hughes previously eliminated 2,000 jobs in the first quarter and 18,000 last year.
Baker Hughes employs about 36,000 people globally now, down 26,000 people from a headcount of more than 62,000 employees before the oil bust began in late 2014.
“Although we expect the market dynamics to remain challenging near term, the structural changes we implemented this quarter have created a stronger foundation for delivering on our strategy,” Baker Hughes Chairman and CEO Martin Craighead said in a prepared statement. “We have made significant progress in a short amount of time, and we remain focused on accelerating our momentum.”