As crude oil prices continue slipping, pink slips are mounting in the oil patch.
The latest: oilfield services provider Baker Hughes(BHI), which said Tuesday it plans to lay off about 7,000 employees — or about 11% of its workforce — in the wake of a nearly 60% drop in the price of crude oil.
“While market demand ended up being more resilient in the fourth quarter than many had predicted, the recent declines seen in rig counts will clearly affect results in 2015,” said CEO Martin Craighead. “We are taking proactive steps to manage the business through these challenges.”
During a conference call with analysts, Craighead was more frank about the layoffs, which will be companywide and occur mostly in the first quarter.
“This is really the crappy part of the job, and this is what I hate about this industry frankly,” Craighead said. “This is the industry, and it’s throwing us another one of these downturns, and we’re going to be good stewards of our business and do the right thing. But these are never decisions that are done mechanically.”