Houston-based Weatherford International laying off 6,000 workers

Thursday, April 16, 2020
HOUSTON, Texas (KTRK) -- Weatherford International, a Houston-based oil and gas service company, says it plans on cutting 6,000 employees due to the current oil market.

The company said that's 25 percent of all of its employees. About 24,000 workers were employed at the beginning of the year.
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Sources tell ABC13 the layoffs began in Houston last week. This is the largest workforce cut done at one time amid the COVID-19 outbreak.

According to Weatherford, the impact of the pandemic has had an unprecedented disruption on the supply/demand equation for oil. In response, Weatherford supplemented its cost reduction initiatives with a number of actions, including:

  • Temporary pay reductions of 20 percent for management and to the Board of Directors' annual cash retainer.
  • Total headcount reductions across North American operations and the global support structure of 38 percent and 25 percent, respectively.
  • Furloughs and pay reductions for remaining employees in the U.S. and select international locations.

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The company adds it has "adequate liquidity" and "is compliant with its financial covenants," although it did not give the value of its cash and assets on hand.

As of Thursday afternoon, Weatherford was trading under $6 a share at 5.89.



For more information, visit Weatherford's website.

The Associated Press contributed to this report.
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