Oilfield Services Provider Weatherford To Cut 7,000 Jobs

Reuters

Jan 30 (Reuters) - Oilfield services company Weatherford International Ltd said it would cut 7,000 jobs and warned that its fourth-quarter profit would miss its forecast, hurt by severe winter in North America and operational disruptions in the Middle East.

The company, which had about 70,000 employees at the end of 2012, said in November profitability at its North American operations would improve in the fourth quarter.

Weatherford shares fell more than 2 percent to $13.54 in early trading on the New York Stock Exchange.

Weatherford said it expects to earn 5 to 8 cents per share in the fourth quarter. It expects to earn between $1.10 and $1.20 per share in 2014, compared with analysts' average estimate of $1.22, according to Thomson Reuters I/B/E/S.

The company said half of the $500 million annual savings from the job cuts would help 2014 profit.

The job cuts are expected to be completed in the first half of 2014, it said.

The company was recently fined $253 million by U.S. regulators to settle long-running federal charges that included flouting sanctions against Iran and Syria, and sending business partners on World Cup soccer junkets.

Weatherford, based in Switzerland, is the smallest of the four large oilfield services firms - Schlumberger Ltd, Halliburton Co and Baker Hughes Inc.

Weatherford gets about 45 percent of revenue from North America and 18 percent from the Middle East and North Africa.

The company said on Thursday that its net debt had been reduced by nearly $700 million during the fourth quarter.

It paid back some debt with the cash portion of the proceeds it received from the sale of its stake in Russian submersible pump producer Borets International.

The company now has about $14.36 billion in total liabilities, including short-term borrowings and long-term debt, as of Sept. 30.

Copyright 2016 Thomson Reuters. Click for Restrictions.

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ExWFT | Mar. 31, 2014
This is not a good news for all WFTWFT employees. Luckily i left before this project. I dont think any company wants to go with this exercise unless they dont have other better options. Instead of complaining about WFT management, you all have option to stay or go ... If you decide to stay you better work hard and behave yourselves. I decided myself. Do you think its fair for only employee to decide if he wants to stay or leave while employer cant have that option? Something to think ...

Hanh Dang | Mar. 13, 2014
Company keep talking about HSe... And bow basic job secure also cannot provide...

current employee | Mar. 5, 2014
Dearest Bernard, Cant believe this happened this fast. What did you say, what have been done??? 7000 peopless life!!! The power was not handed to the right person Im afraid. I hope you see what happening and listen to the voice of peoples in need, think twice and act for the right so that you wouldnt face the regret later on and suffer with it.

former employee | Feb. 28, 2014
iwas just layed off from weatherford after having just 1 year of service with them. after what they have caused there should be a class action lawsuit that all affected employees should be able to file as a result of their bad business practice many are suffering over this can a class action lawsuit be filed any one have any answer and any way to get one started if it can be done what did I do to deserve this. I went to work every day and did my job.

Oilfield trash | Jan. 31, 2014
That is a very drastic, draconian move.. Who in their right mind would ever want to work for Weatherford, now or again? Obviously terrible management.. the CEO, VPís CMís down to all the managers should be fired , not 7000 employees which will immediately affect 14,000 to 21,000 people considering these employees have family.. Not to say the trickle down consequences it will have on businesses in general who relied on the spending power of these 7000 employees! How sad is this!


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