Schlumberger to layoff 9,000 as drop in oil prices continue

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HOUSTON, Texas — Schlumberger, a Houston- based company is the world’s largest oilfield services company, and reported a sharp decline in fourth quarter profits relating to lower expected exploration spending as a result of the plunge in crude oil prices.

Oil prices continued to plunge as the price of crude fell to below $47 on Thursday’s trading in the stock market. Last June, the price for a barrel was at $107.

Because of the drop in oil prices, companies have been forced to cut costs. Schlumberger has confirmed that they will be laying off 9,000 employees, which is about seven percent of the company’s employees. No word yet on how many of those employees will be in the Houston-area.

Schlumberger is not the first to put jobs on the chopping block due to the dramatic fall in oil prices. Civeo, a provider of housing for oil workers, said in December that it was laying off 1,000 employees.

Meanwhile, customers are happy going to the pump these days. Gas is now going for less than $2 a gallon at most U.S. gas stations. Prices have plunged about 46 cents a gallon in the last month and are down $1.21 a gallon in the last year.