SLB Restructures Business Operations, Plans More Job Cuts

Core Viewpoint - SLB is undergoing a significant internal reorganization, including workforce reduction, to enhance operational efficiency and financial stability amid concerns of an oversupplied oil market [1][5]. Group 1: Restructuring Initiatives - SLB is establishing a new performance function led by a chief performance officer, integrating various operational aspects such as security and global business services [2]. - The company has incurred $237 million in severance costs in 2024 due to restructuring efforts, with personnel updates expected by the end of the quarter [3]. - As of February 2024, SLB employed approximately 111,000 people, indicating a substantial workforce that may be impacted by the ongoing reorganization [3]. Group 2: Market Conditions and Strategic Moves - The restructuring reflects a strategic response to potential oversupply in the oil market and a cautious spending approach by industry players [5]. - SLB continues to operate in Russia despite U.S. sanctions, although revenues from this region are declining, highlighting the geopolitical challenges faced by the company [4]. - The proactive restructuring aims to optimize efficiency and align with shifting business conditions, enhancing value for stakeholders [4].