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Weatherford ups job cuts amid second quarter loss

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Weatherford International PLC (NYSE: WFT) has increased its targeted number of job cuts for 2015 again.

In the company’s second-quarter earnings report released on July 22, Weatherford announced that it will boost cuts from 10,000 to 11,000 employees.

The Ireland-domiciled services company, which operates out of Houston, has increased its job cuts target already this year.

In February, President and CEO Bernard Duroc-Danner announced that the company would cut 8,000 jobs in the first half of 2015 in light of financial losses brought on by the oil slump.

In April, this number was increased to 10,000 jobs, or 18 percent of the company’s workforce, where it remained until this most recent announcement. In 2014, the company already let go 7,000 employees.

Weatherford has completed “substantially all” of the 10,000 cuts that were expected to end at the close of the second quarter, according to the company’s quarterly earnings report. The cuts were intended to result in annualized savings of $640 million.

However, Weatherford struggled again in the second quarter.

Revenue fell from $3.7 billion in the second quarter of 2014 to $2.4 billion in the second quarter this year. In the first quarter, the company’s revenue came in at $2.8 billion, according to the report.

In the second quarter, Weatherford reported a net loss of $489 million including charges. Excluding charges, the net loss was $77 million, or 10 cents per share.

Weatherford closed more than 60 operating facilities in North America in the first half of the year and plans to shut down 30 more by the end of 2015.

“Market conditions will not improve significantly in the balance of the year,” Duroc-Danner said in the report. “There will be modest activity increases in North America and selected international geographies, but these will not be material.”

The company now expects annualized savings of more that $700 million.

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