The popular on and offshore drilling leading company - Nabors Industries declared on Tuesday that the company has reduced 12 percent of its workforce due to the rig losses and lower oil prices, reported FuelFix.
This cut in the workforce approximately reports for 3,500 jobs. This Bermuda-based company is the victim to the reducing oil prices to the equation of 32 percent rig count reduction – a peak achieved from last year.
The company provides work for nearly 29,000 individuals and a 20 percent reduction in the U.S. drilling workforce is inclusive too. Moreover, the 12 percent cut also consists of 10 percent sales staff.
Nabors witnessed a fall to 78 percent in the fourth quarter alone. The chief financial officer of the company expects the U.S. rig calculation to slope down in the future. It is likely to fall to 50 percent from its peak.
The CEO in a conference call to the investors discussed how the company is bracing up for future growth opportunities. It has a variety for potential long-term sloped downs in the oil prices.
The company is not counting on the V, added the CEO. By V he referred to a rapid recovery in oil prices that would eas4e the industry’s ongoing storm and tension about the oil profits as well as the jobs. The executives also expressed that the company would not halt at the 12 percent. But they are looking up to around 15 percent of job cuts for 2015.
The 15 percent would have 4,350 jobs.
Nabors has its main base in Houston. It announced its job cuts at the time when the company is still amid the merger with C&J Energy Services. The expected deal is supposed to be completed in March.