- Company has eliminated total of almost 16,000 since 2014 peak
- Oil services market recovery may be delayed until 2018
Halliburton Co., the world’s second-largest oilfield services provider, has cut 2,000 more jobs, mostly in North America, the region hardest hit by the crude collapse.
The Houston-based company has now laid off a total of almost 16,000, or about 19 percent of its global workforce, since its peak last year, Emily Mir, a spokeswoman, said Thursday in an e-mailed statement. Halliburton had previously said in July that 14,000 jobs had been eliminated.
The company is flattening its North America staff by reducing management layers, President Jeff Miller wrote in a memo distributed to employees Monday. Halliburton generates almost half its sales from the U.S. and Canada, the world’s largest market for the well completion technique known as hydraulic fracturing.
With oil prices down by more than half since June 2014, Halliburton’s customers have had to reduce spending by more than a third in North America. Although more than 1,000 North American rigs have been idled over the past year, more are expected to lose work by the end of the year.
The return to boom times for the service companies may be delayed until 2018, a year later than many analysts expect, Andrew Cosgrove and William Foiles, analysts at Bloomberg Intelligence, wrote Thursday in a report. Consensus estimates call for sales gains in 2017 that would be only 13 percent short of the peaks recorded last year, according to the report.
"A more subdued trajectory may take shape instead," the analysts wrote, "potentially laying the groundwork for a more abrupt recovery in 2018 as the market balance tips to a deficit."