Halliburton Cuts 5,000 More Jobs

Halliburton will cut 8% of its entire workforce or close to 5,000 jobs announced, the energy company based in Houston on Thursday.

The new round of job cuts is to take place around the world over the upcoming weeks.

It is the most recent evidence of a crisis confronting the oil industry in the U.S. as the prices of crude have dropped to lows of seven years.

The industry has turned downward must faster than any had expected, said Dave Lesar the CEO at Halliburton and Jeff Miller the President in an internal memo to employees.

The executives said it was now clear business opportunities would be worse than was anticipated for the coming year.

This latest set of pink slips by Halliburton bring the jobs cut total to 27,000 since the total number of employees peaked during 2014, said the company.

Halliburton also has attempted to cope with inexpensive oil through a consolidation of facilities in 20 nations and by shuttering operations completely in two other countries.

The downturn in oil has sent the profits of Halliburton plummeting. The price of its stock has lost over 50% of its value since the middle of 2014 when prices of crude reached their peak.

Oil services businesses such as Halliburton and its rivals Baker Hughes and Schlumberger have made announcements that have included some of the biggest job cuts during the past 18 months.

The companies provide the expertise and tools to drill for oil, but do not own actual reserves within the ground.

The dramatic lowering of drilling activity within the U.S. had cost companies specializing in oil service a great deal of business. What drilling business they receive, has come with steep discounts amidst the drilling downturn.

For example, Halliburton said its customers in the U.S. would be spending approximately 50% less this year than they did last year.

Many oil services businesses that are smaller are now going through financial stress. As many as 44 of them, have had to file bankruptcy since the beginning of 2015, said one law firm that works with them.

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