Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price

Although Baker Hughes, one of the largest oilfield services companies in the United States, had “record high” revenue in 2014 ($24.6 billion for the year), the company announced yesterday that they will lay off 7,000 employees in the first three months of 2015. This comes on the heals of Sclumberger’s announcement that they will lay off 9,000 (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). Both companies have a major presence in the Marcellus/Utica and both blame low oil prices for the layoffs. Their customers (exploration and production companies) are scaling back and not drilling as much, and for what drilling they do they are now squeezing oilfield services companies like crazy to lower costs. It certainly makes sense, on paper, for these companies to take drastic actions like this. But that’s not much comfort for the 7,000 families who are losing the jobs. Baker Hughes employs 62,000 people. The 7,000 jobs cut represent 11% of their workforce. Baker Hughes CEO Martin Craighead called the coming layoffs the “crappy part” of his job and the thing he really “hates” about the drilling industry…

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