Schlumberger (NYSE:SLB) is planning massive layoffs as the oil company struggles with declining revenue in the second quarter of 2020.
The Schlumberger layoff news is tucked away inside the company’s earnings report for the second quarter of the year. A section of the company’s report notes that it suffered $3.7 billion in charges during the period.
According to the earnings report, Schlumberger $1.02 billion of these charges are connected to severance pay. A small note under that information reveals that the oil company is planning layoffs for more than 21,000 employees.
The Schlumberger layoffs shouldn’t come as any surprise. The company’s most recent quarter saw it bring in a revenue of $5.36 billion. While that matches Wall Street’s estimate for the period, its a 35% drop year-over-year and a 28% sequential decline.
The Schlumberger earnings also have it reporting diluted earnings per share of 5 cents. That’s better than analysts’ estimate of -1 cents per share. However, it’s an 86% decrease from the company’s diluted EPS of 25 cents from the same period of the year prior.
Olivier Le Peuch, CEO of Schlumberger, said this in the earnings report.
“Before addressing our results, I would like to pay tribute to our employees and contractors for their remarkable resilience in the face of the historic COVID-19 pandemic that confronts us all.”
Schlumberger doesn’t provide any further information about the layoffs in its earnings report.
SLB stock was up 1.4% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.