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Oil company Schlumberger is currently suffering huge losses, having announced its weakest sales in the last 14 years. Because of this, one fifth of its workforce will be cut down, and it could rise even further if the pandemic continues to escalate, in which quarantine will again be introduced, which will inevitably affect the recovery of global energy demand.
The second quarter was so unfortunate for Schlumberger that the company spent $ 1 billion on jobs, which resulted to staff reductions.
"This was probably the most challenging quarter in decades," said CEO Olivier Le Peuch. "The subsequent waves of potential COVID-19 resurgence represent a risk with this prospect," he added.
At the moment, onshore oil production in North America fell 60% compared to the previous quarter.
Le Peuch maintained a dividend of 12.5 cents per share from additional cuts.
Just three months ago, the CEO cut payouts for the first time in over 40 years.
According to the statement, the company employed 105,000 people at the end of 2019, and at the moment, has laid-off 21,000 workers.
Industry consultant Rystad Energy predicts that the number of wells drilled worldwide will drop by almost a quarter this year, and no one expects a full recovery in demand in the coming years.
Schlumberger is the last company of the top three oilfield services to report its second quarter results.
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