Top oilfield services provider SLB is reorganizing certain functions within its business and continuing to reduce its workforce, according to a source familiar with the matter and an internal email seen by Reuters.
As part of its reorganization, SLB will create a new performance function, led by a new chief performance officer, it said in an internal email sent to employees on Monday and seen by Reuters. That organization will include a series of functions, ranging from security and operational integrity to global business services, the email said.
“The first critical focus will be to implement our new global functional structure, which spans across functions, divisions, basins and geounits,” it also said.
The changes come as the Houston-based company has been working on a cost-savings initiative, according to the source, and is preparing for tepid growth this year as its customers are more cautious about spending amid concerns of an oversupplied oil market.
SLB had been undergoing some restructuring efforts in the past year and took $237 million in severance charges in 2024, according to its quarterly earnings report.
It was not immediately clear how many workers would be laid off as part of the reorganization. Reorganized functions would be in place by the end of the month and personnel updates would be out by the end of the quarter, said the source, who spoke on condition of anonymity as the matter was not public.
SLB employed roughly 111,000 people as of February 2024, according to a filing.
“As a global technology company, we constantly optimize and evolve our resources and workforce to drive value for our customers and stakeholders,” a spokesperson for the company said.
“Adapting our operating structure and accelerating our efficiency programs are proactive, continuous processes that we follow as business conditions and volume of activity across our geographies and business lines dynamically change,” the spokesperson added.
SLB raised its quarterly dividend last month and accelerated share repurchases as its fourth-quarter profits topped Wall Street expectations.
The world’s largest oilfield service company has continued to operate in Russia, even as competitors left following the country’s invasion of Ukraine in 2022. Last month, it said its current business aligns with new U.S. sanctions but warned that revenue in Russia was declining.
(Reporting by Liz Hampton in Denver, Arathy Somasekhar and Georgina McCartney in Houston Editing by Marguerita Choy)