An email from Halliburton CEO Dave Lesar, which was sent to every employee in the company, hinted at the harsh times ahead for jobs and oil production.
The email obtained by Oilpro.com addresses not only cuts but also a more in-depth look at the recent Baker Hughes buyout that occurred last month.
CEO Dave Lesar: “While I look forward with great excitement to achieving the benefits of the acquisition we will not be immune to market conditions and right now it looks like 2015 is going to be a tough year. We have been through these before and know how to navigate them while maintaining our focus on the future. We will have to make reductions to our structure as any prudent business would. But I want to be clear — these reductions are related to market conditions, not the acquisition. It’s important to remember that distinction as we go forward.”
The Houston-based company, Halliburton Co., recently cut 1,000 jobs in the Eastern Hemisphere and by the tone of the letter, more unfortunate reductions are a distinct possibility for the upcoming year. In the email, Lesar notes that the Baker Hughes / Halliburton entity will have over 120,000 employees. This may be the first look at the immensity of job loss since the two companies combined employ approximately 140,000 people now. However, since the transaction of the Baker Hughes deal called for $2 billion in annual savings, the job loss depicted here seems less of a shock.
With continuing low oil prices, stagnant litigation on the U.S. export ban and OPEC refusing to budge on crude output, 2015 is shaping up to be one heck of a year for the American energy industry. Anytime a rough patch hits an economic sector, the effect on jobs is a crucial talking point in a downturn’s impact. But Lesar is more than excited about the year ahead. “The acquisition is expected to close in the second half of 2015, and until closing the two companies must continue to operate independently. In the meantime, stay focused. YOU make Halliburton the success that it is today, not me or the management team. YOU are the key to our future. YOU are Halliburton. Be sure to read the email in its entirety here.