SLB to lay off another 11,000

[huch]

http://calgaryherald.com/business/energy/schlumberger-slashing-another-11000-jobs


Ouch....

Anyone here work for the big blue?

[ExtraSlow]

Will be interesting to see if the other large multi-national service companies decide to play follow-the-leader and do something similar.

You've got to wonder about the BHI/HAL merger. If the end result is likely to be layoffs, is it better to do that before or after the tie-up? What about the portions of the business that they've already announced they are divesting? Is it easier to divest a smaller workforce? Or do you just do the divestiture and make taking the employees optional, and cut people that way?

Interesting, but not fun, times.

[killramos]

I think it depends. Can you write off severance?

[ExtraSlow]

Well, I don't know about the tax implications, but I do know that typically corporations that spend heavily on severance typically note that in the "one-time-charge" section of the quarterly reports, and thus it is often excluded from the announced earnings per share numbers.

So it's not hidden, exactly, but it's kind of not included.

[huch]

Originally posted by ExtraSlow
Will be interesting to see if the other large multi-national service companies decide to play follow-the-leader and do something similar.

You've got to wonder about the BHI/HAL merger. If the end result is likely to be layoffs, is it better to do that before or after the tie-up? What about the portions of the business that they've already announced they are divesting? Is it easier to divest a smaller workforce? Or do you just do the divestiture and make taking the employees optional, and cut people that way?

Interesting, but not fun, times.

I think they've already laid off a substantial amount from both companies partly due to economic situation but also in preparation for the acquisition.

Halliburton laid off 8000 and Baker laid off 7000, together that was more than SLB at the time. Do I think it's over yet? No... but I think they got a big chunk of it out of the way.

I was under the impression that HAL divesting their drilling assets shouldn't technically result in lay offs but whoever purchases those divisions will make that call.

Hopefully the other service companies don't follow suit...

[Feruk]

Better layoffs than 30% cut in salaries and RRSP contributions like Trican did IMO. That way at least the workers you wanna keep will stay at your company.

[phreezee]

Originally posted by Feruk
Better layoffs than 30% cut in salaries and RRSP contributions like Trican did IMO. That way at least the workers you wanna keep will stay at your company.

Really? I heard only 10% at Trican. Did Calfrac do any salary cuts?

[Graham_A_M]

Yeah, SLB bought the company I used to work for, and I was one of the many to go with the first round of Layoffs. :nut:

This doesnt surprise me in the least.

[huch]

Originally posted by Feruk
Better layoffs than 30% cut in salaries and RRSP contributions like Trican did IMO. That way at least the workers you wanna keep will stay at your company.

I don't know.... I used to work at SLB and know quite a few experienced, highly skilled guys that were packaged. They were guys whose managers fought to keep them but were forced to lay them off purely due to their pay grade - the business line mangers were cutting their way to profitability.

It's a knee jerk reaction that will cost them even more when the industry rebounds.

I agree with you as a whole but there really are some exceptions to that.

[94CoRd]

Originally posted by phreezee


Really? I heard only 10% at Trican. Did Calfrac do any salary cuts?

Trican did an initial 10%, then another 10%, plus stopped ESOP and RRSP matching.

It works out to about a 19% total salary reduction..

[Gman.45]

It's a knee jerk reaction that will cost them even more when the industry rebounds.

This is my first thought as well.

Considering the potential for Iran for just one example, to continue putting pressure on Saudi's ability to deliver oil (they could close the Gulf, and then use Yemen/etc to get the seaway on the other side of Saudi - this is one of the primary reasons for their moves in Yemen) - that would drive the price up through the roof, probably higher than it was before the fall into double digits. It's not "just" about consumers, much of the price has to do with strategic reserves, security, etc, as everyone here already knows I'm sure.

All I'm saying is it only takes a single "crisis" regarding the security of the oil production and distribution nodes in various places around the world, to cause a huge upswing in the price, and the price is what all the layoffs are all about, n'est pas? And that is just one single variable that could cause the price to increase back to previous levels, or higher.

Then what do these companies do? They'll have wasted $ in severance/packaging many of these employees for nothing, when they have to go back to them and try and re hire their skilled labor force. That, or have their costs take a beating due to having to train unskilled workers, or tolerate the slower work/more mistakes which cost a lot.

It must be an awful situation to be in as a corporation, having to make these decisions, and I feel sorry for those many Albertans in the industry.

[Xtrema]

Originally posted by Gman.45

Then what do these companies do? They'll have wasted $ in severance/packaging many of these employees for nothing, when they have to go back to them and try and re hire their skilled labor force. That, or have their costs take a beating due to having to train unskilled workers, or tolerate the slower work/more mistakes which cost a lot.

It must be an awful situation to be in as a corporation, having to make these decisions, and I feel sorry for those many Albertans in the industry.

Shareholder gotta be happy. Cost cutting is immediately felt while future growth is not guaranteed. If people cost more down the road, just bill the customer more. If they don't cost more, just pocket the margin.

I know loosing good people impact the ability to deliver but nobody is irreplaceable.

[Feruk]

I heard 2 x 10% reduction, and the RRSP cut equated to almost 10% more, but that's just word of mouth, so I could be off.


Originally posted by huch
I don't know.... I used to work at SLB and know quite a few experienced, highly skilled guys that were packaged. They were guys whose managers fought to keep them but were forced to lay them off purely due to their pay grade - the business line mangers were cutting their way to profitability.
You're giving a reason not to cut people. I was more talking about why it's better to cut than to reduce pay. If you reduce pay, the guys that are worth it will find jobs elsewhere, even in today's environment, and you'll be left with the guys you don't really want. It's better to trim the fat and keep top performers happy IMO.

[BavarianBeast]

I know a boatload of people who got 10-30% pay cuts. Is a single one of them looking for another job? Hell no, not right now they sure as hell aren't. If the economy improves and their wages don't, then sure they will start.

Most of my friends who have gotten pay cuts are just happy they still have jobs.

A lot of them are p.geophys/p.engs and have been out of work for over 2 months now and forcing a lot of them are starting to look over seas to find work.

[HiTempguy1]

Originally posted by Xtrema

.

I know loosing good people impact the ability to deliver but nobody is irreplaceable.

Yes actually, there are plenty of people who are irreplaceable.

When it comes to gaining years of hands on experience with a piece of equipment, not just some fucking excel spreadsheet that any dunce with business degree can whip-up, it becomes quite apparent who can't be replaced.

I deal with it everyday in the oilfield, what is lost is KNOWLEDGE and WISDOM about how something that is not comprised of digital, always perfect data (like how a plant operates) is lost.

You don't magically "get that back" by hiring new people with "experience" at other facilities.

[Mibz]

Originally posted by HiTempguy1
Yes actually, there are plenty of people who are irreplaceable.

When it comes to gaining years of hands on experience with a piece of equipment, not just some fucking excel spreadsheet that any dunce with business degree can whip-up, it becomes quite apparent who can't be replaced.

I deal with it everyday in the oilfield, what is lost is KNOWLEDGE and WISDOM about how something that is not comprised of digital, always perfect data (like how a plant operates) is lost.

You don't magically "get that back" by hiring new people with "experience" at other facilities. Tee hee

[BrknFngrs]

Originally posted by HiTempguy1


Yes actually, there are plenty of people who are irreplaceable.

When it comes to gaining years of hands on experience with a piece of equipment, not just some fucking excel spreadsheet that any dunce with business degree can whip-up, it becomes quite apparent who can't be replaced.

I deal with it everyday in the oilfield, what is lost is KNOWLEDGE and WISDOM about how something that is not comprised of digital, always perfect data (like how a plant operates) is lost.

You don't magically "get that back" by hiring new people with "experience" at other facilities.

union employee?

[codetrap]

.