Weatherford Eliminates COO Role amid Oil Slump



Reuters

Jan 28 (Reuters) – Oil services company Weatherford International Plc said it would eliminate the position of chief operating officer as it copes with a 60 percent slide in global crude oil prices.

The company said COO Dharmesh Mehta would move to the role of executive vice president for corporate strategy.

The chief operating officer position will not be filled as the company adopts a flatter management structure, Weatherford said in a regulatory filing on Wednesday. 

Global oversupply and tepid demand growth have sent crude prices to five-year lows, prompting oil producers to trim their budgets.

Oil companies have responded to the lower spending levels by cutting thousands of jobs and also salaries.

Schlumberger NV, the world's largest oilfield services provider, is laying off 9000 employees, while Baker Hughes Inc is reducing its headcount by 7,000.

Oil major BP Plc said on Monday it would freeze base pay across the company this year, while Resolute Energy Corp said last week that it would slash its CEO's base pay by 96 percent.

Weatherford shares closed at $11.21 on the New York Stock Exchange on Tuesday. The stock has more than halved over the past six months, mirroring the fall in oil prices.

(Reporting by Swetha Gopinath in Bengaluru; Editing by Sriraj Kalluvila)

 



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