Major oil companies layoff more employees due to U.S. crude oil price drop
As the price of crude oil continues to slip down, the oil companies are cutting jobs to survive the business. In the first quarter of this year, blue collar jobs were deterred, this point, engineers and scientists will be affected.
The Wall Street Journal noted that last week, commodities market went down. The price of oil was slashed to 6%, gold plummeted to 4% and copper collapsed to 4.9%. A climbing U.S. dollar and deteriorated economic growth in China are terribly affecting commodities.
Benchmark West Texas Intermediate dropped to $46. Brent crude, another type that serves as a touchstone for pricing, also went down to $48.15.
The USA Today reported in January that Baker Hughes cut 7,000 jobs. CEO Martin Craighead sees the recent declines in rig counts will clearly affect results in 2015.
"We are taking proactive steps to manage the business through these challenge", Craighead added.
The company secretly doubled the number of termination to what was originally announced and said to be dismissing more.
On Tuesday, the world's leading oilfield services, closed at $57.26. Baker Hughes was bought by Halliburton for $34.8 billion operating in over 90 countries, supplying oil and gas with products and services for stock deliberation, production and drilling.
Baker Hughes has just joined other energy companies in the mass layoff. Last year, Halliburton separately announced to cut 1,000 workers, about 8% of its labor force. Schlumberger also laid off 8% of its global workforce, which is 9,000 of its employees. Suncor Energy had cut 1,000 jobs from its sands projects. Apache Oil has also dismissed 250 employees.
Graves & Co, an energy supply consultancy for oil and gas told WSJ that almost 50, 000 jobs connected to oil and gas distribution had been laid off since April. The first round this year was applied to blue-collar jobs such as the crews in the manufacturing sites and oil rig workers. This time, the job cut will be stretched to engineers and scientists.
More energy companies are expected to halt jobs this year.