Low Oil Prices Bring Layoffs at Energy Firm Baker Hughes
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Stockbyte/Thinkstock(HOUSTON) — Falling gasoline prices may be great for consumers, but they’re tough on energy firms and their workers.
The latest layoffs announcement comes from the oilfield services firm Baker Hughes, which plans to cut 7,000 employees — 11 percent of its workforce. While the company doesn’t drill, it provides the equipment and services that other companies use to drill for oil.
“While market demand ended up being more resilient in the fourth quarter than many had predicted, the recent declines seen in rig counts will clearly affect results in 2015,” Baker Hughes CEO Martin Craighead said in a statement Tuesday. “We are taking proactive steps to manage the business through these challenges, and we are well positioned financially for the months ahead.”
Since last June, global oil prices have plunged 60 percent, making some drilling operations unprofitable.
In all, the industry is cutting about 20,000 jobs — at least until oil prices rebound.
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