Energy industry layoffs have moved into six figures, a number bolstered by the decision of Schlumberger Ltd. (NYSE: SLB) to cut 10,000 people. The company’s financial results made the decision nearly inevitable.
Schlumberger’s earnings for 2015 included a revenue fall off of 27% to $35.5 billion. EPS dropped from $5.75 in 2014 to $3.37 this year, a plunge of 39%. Fourth-quarter results were worse. Revenue dropped 39% to $7.7 billion and EPS fell 57% to $0.65.
The company did pick layoffs over investor benefits. Schlumberger will buy back $10 billion in shares under a new share repurchase program and approved a $0.50 per share quarterly dividend.
The desperate moves were taken as its shares have fallen from $117 in early July 2014 to the current level of $64.
As the results were released, Schlumberger Chairman and CEO Paal Kibsgaard commented:
The strength of these results demonstrates the resiliency of our business portfolio in the face of the activity, pricing and foreign currency challenges of 2015. Our performance was driven by excellence in execution, prompt and proactive cost and resource management, and the growing impact of our transformation program.
It is reasonable to say that the numbers were a demonstration of resiliency. They are too bad to apply that evaluation.
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