HOUSTON - Oilfield services provider Baker Hughes Inc. (BHI) said Friday the company has begun laying off 1,500 workers, or about 4% of its workforce, as part of a second round of cuts resulting from the economic downturn.
Gary Flaharty, Baker Hughes' director of investor relations, told Dow Jones Newswires that about one-third of the cuts will occur in the U.S. and will involve a variety of posts, including manufacturing and field operations jobs.
The cuts come "in response to the stalled economy, lower oil prices, lower natural gas prices and further cutbacks in spending by our customers," Flaharty said.
The layoff round is the second since January, when Baker Hughes announced the elimination of an initial 1,500 jobs.
Flaharty said Friday it may make additional cuts if demand for its services continues to erode.
The latest move by Baker Hughes reflects the dire straits oilfield service providers are facing amid low energy prices. Oilfield service providers Schlumberger Ltd (SLB) and Halliburton (HAL) are also laying off workers.
Oil and natural gas prices have lost about 70% of their value since last summer - when natural gas peaked at $13.694 a million British thermal units and oil hit an all time high above $145 a barrel.
Oil and natural gas companies have throttled back drilling activity in response to those lower prices. Firms like Chesapeake Energy Corp. (CHK) and Devon Energy Corp. (DVN) have let rigs fall idle to curb costs.
The number of rigs drilling for oil and gas in the U.S. has dropped about 45% since hitting a peak in September, according to rig data from Baker Hughes.
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