Oilfield Services Company Schlumberger Is Cutting 9,000 Jobs

Here come the oil-related job cuts.

In its fourth quarter earnings announcement on Thursday, oilfield services company Schlumberger announced that it will cut 9,000 jobs, or about 8% of its workforce.

The company said the job cuts come, “In response to lower commodity pricing and anticipated lower exploration and production spending in 2015.”

Schlumberger is a provider of equipment and services to oil and gas companies, and over the last six months shares of the $US100 billion company have declined more than 30% amid the crash in oil prices.

In addition to announcing job cuts, Schlumberger reported earnings per share of $US1.50, excluding special charges, on revenue of $US12.6 billion. Earnings were up 11% over the prior year while revenue was a 6% increase. Following the news shares of Schlumberger were up about 1.5% in after hours trading on Thursday.

The company also raised its dividend 25% and repurchased $US1.1 billion worth of its own stock during the quarter, both efforts to reward shareholders that have stuck with the company amid the decline in oil prices and selling pressure faced by all companies in the energy sector.

In the fourth quarter, Schlumberger also took a $US472 million devaluation charge related to the decline in the value of the Venezuelan bolivar against the US dollar. And as Business Insider’s Linette Lopez noted on Thursday, the bond market is worried about the situation in Venezuela.

In a presentation on Tuesday, DoubleLine’s Jeff Gundlach talked about the rapid decline in energy prices, and said that while the market is still making sense of the massive decline, the knock-on effects, like a reduction in capital investment and job cuts, will take a few quarters to really kick in.

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