Reorganization and Workforce Reduction at Top Oilfield Services Provider SLB
Houston-based SLB, a leading oilfield services company, has initiated a reorganization initiative and plans to continue downsizing its workforce.
Reorganization Details
As part of the reorganization, SLB will establish a new performance function headed by a chief performance officer. This function will encompass various responsibilities, including security, operational integrity, and global business services.
The reorganization aims to implement a new global functional structure across divisions, basins, and geounits.
Cost-Saving Initiatives
The reorganization is part of SLB's ongoing cost-saving efforts amid tepid growth projections and customer spending concerns over an oversupplied oil market.
The company has undertaken restructuring efforts in the past year and incurred severance charges of $237 million in 2024.
Layoffs and Timelines
The number of layoffs resulting from the reorganization is currently unknown. Reorganized functions are expected to be implemented by month-end, with personnel updates by quarter-end.
SLB employed approximately 111,000 people as of February 2024.
Company Statement
"As a technology company, we continually optimize our resources and workforce to enhance value for stakeholders," said a company spokesperson.
Financial Performance and Operations
Despite the reorganization and workforce reduction, SLB raised its quarterly dividend and accelerated share repurchases after exceeding Wall Street's profit expectations in the fourth quarter.
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