Top Global Business Giant to 'Lay Off' Over 20,000 Employees! - Report

One of the largest oilfield service providers in the world- Schlumberger has announced to lay off more than 21,000 employees, to help the company deal with the crisis caused by the coronavirus pandemic. The 21,000 staff is close to a quarter of its entire workforce. 

As per Arab news report, the company will pay more than $1bn in severance payments, which is the vast majority of the amount expected to be paid during the second half of 2020. 

“This has probably been the most challenging quarter in past decades. Schlumberger second-quarter revenue declined 28 percent sequentially, caused by the unprecedented fall in North America activity, and international activity drop due to downward revisions to customer budgets accentuated by COVID-19 disruptions,” said Schlumberger CEO Olivier Le Peuch.

“We believe the decisive and comprehensive measures we have taken to face the industry reality will continue to protect our liquidity and cash positions and allow us to expand our margins. We have taken the long-term view in restructuring our company—aligning with our customers’ workflows, empowering a lean and responsive organization, and accelerating the execution of our performance strategy, with capital stewardship, fit-for-basin, and digital as key attributes of success,” Le Peuch added.

Schlumberger reported revenues of $5.4bn for the second quarter, which was down 28 percent year-on-year, resulting in a net loss of $3.43bn. Excluding charges and credits, the company could only earn 5 cents per share, Arab news further stated.