U.S. oilfield services provider Halliburton has been cutting staff in recent weeks, according to two sources familiar with the matter, marking the latest workforce reduction in the U.S. oil industry as it faces rising costs and a period of lower prices and volatility.
Global benchmark Brent crude oil prices have dropped more than 10% this year amid uncertainty over global trade policies and as the Organization of the Petroleum Exporting Countries and allies raise output. U.S. oil company ConocoPhillips this week announced it would cut up to 25% of its staff to reduce costs.
The scope of Halliburton's layoffs was not immediately clear.
Halliburton has rolled out the cuts over several weeks, according to the sources, who were directly involved in layoffs but not authorized to speak publicly. At least three business divisions had lost between 20% and 40% of employees, the sources said.
Halliburton, the third-largest global oilfield services company by revenue, did not respond to a request for comment.
Oilfield services companies provide technical expertise, equipment, and labor, including drilling, to support oil and gas exploration and production.
Houston, Texas-based Halliburton had 48,395 employees at the end of 2024, according to its latest annual report.
The company in June said it expected a sharp decline in full-year revenue, as it warned of lower activity in the oil and gas sector. It posted a 33% fall in second-quarter profit this year amid weaker demand.
On a conference call with analysts after reporting second-quarter earnings, CEO Jeff Miller noted the oilfield services market appeared very different than it did 90 days ago, citing a slowdown in North America and among large national oil companies elsewhere.
"To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term," he said.
Brent crude was trading below $66 on Friday, down nearly 20% from this year's peak north of $82 a barrel in mid-January, as investors braced for the OPEC+ group's meeting on Sunday. Reuters earlier reported the group will consider raising output further at that meeting.
(Reuters - Reporting by Liz Hampton in Denver and Shariq Khan in New York; Additional reporting by Arathy Somasekhar and Georgina McCartney in Houston; Editing by Rod Nickel)