Halliburton CEO: Restructuring Possible as 2015 Looks to Be 'Tough Year'

Halliburton Chairman and CEO Dave Lesar said the company will not be immune to the tough market conditions anticipated in 2015, but said any potential restructuring or layoffs would be due to market conditions, not Halliburton’s acquisition of oil service firm Baker Hughes.

Lesar told employees in a Dec. 17 email filed in regulatory documents that the company would maintain its current strategies, including a focus on leading in unconventional resource development, outperforming in the deepwater and rapidly growing its mature field business.

“Many of our business lines will be significantly strengthened with the addition of the Baker Hughes people, technology and customer relationships,” said Lesar. “This acquisition will help us grow our revenues, expand our footprint, add high quality resources, spend more on select technologies and compete more effectively in underserved markets around the globe.”

Lesar said the acquisition was not about becoming more profitable through cutting costs, although duplications will need to be eliminated synergies achieved to allow Halliburton to become an effective customer-focused organization.

Last week, the company announced it would lay off around 1,000 employees from its Eastern Hemisphere operations, effective immediately, due to the low oil price environment.

Despite the recent round of announced layoffs, Lesar noted in his email that the acquisition of Baker Hughes would benefit employees of both companies by providing a bigger platform of career opportunities. Halliburton currently has more than 120,000 employees, including more than 1,000 ex-Baker Hughes employees in Halliburton.

The recent decline in global oil prices has prompted some companies to reduce their 2015 spending plans, putting future oil and gas investments worldwide at risk.