Thread regarding Weatherford International Ltd. layoffs

Bernard Duroc Danner

Bernard's history

Bernard Duroc Danner grew up in a fairly well to do family. His father was on the board of directors at Total (French Oil Company) and that gave him a knowledge of the oil business.

He father send him over to the USA where he got his PHD in business at Wharton school of business in 1987.

That part is fairly well known.

What is not generally known is that he also got a gift of 20 million USD from his father as well.

He wanted to take that 20 million and use it and not just let it gain interest in some bank. As he had knowledge in the oilfield, that is where he wanted to invest it.

One of the things he noted with his father's company, Total is that they had limited success going into any country that had a National Oil Company (NOC).

However, the Oilfield Service Companies (Schlumberger and Halliburton) could get into these NOC's and Bernard noticed that.

He wanted to create his own version of a Schlumberger that he could be the head and CEO of. Also, a number of existing oilfield service companies were suffering from the downturn in oil price (It was $10 back then) and he could pick up these companies very cheaply.

And that is exactly what he did, He bought companies in distress (including Weatherford) and put them together into (as he would call it, One Weatherford). Of course, he also assumed the debt from these companies, as well, which he projected that he could pay off when the price improved.

As the price of oil increased from the $10/barrel to the $100+ range, so did his investments and they did very well and with oil price in the $100 range, he had no shortage of money coming into Weatherford.

Weatherford also got into places where Halliburton, Schlumberger and Baker were also located and the NOC's were all to happy to give Weatherford a chance as many of these NOC's felt they were overcharged by these other companies.

Of course, in some of these NOC's there was some corruption (as that was their normal way of doing business) but as long as nobody said anything, it was implied that it was okay.

Even with these legal problems, things were still okay although it certainly hurt them financially.

Even the disaster at Deep Horizon didn't affect Weatherford that much.

Legal problems aside, everything went fairly well, until the oil price took a long term steep drop around 2014 and then he and Weatherford struggled with what to do as the money they had flowing in essentially stopped.

He (and the board of directors) decided to cut positions and since North America had the greatest costs, that is where the bulk of the cuts occurred.

He (and the board of directors) also transferred the corporate head office from Bermuda to Switzerland and eventually to Ireland where the corporate tax rate was next to nothing.

He also tried to sell off divisions of Weatherford but as the offers Weatherford was getting were very low, he refused to sell.

When that was still not enough, Weatherford then started to cut benefits and you can see the uproar that has caused, especially in North America.

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| 9551 views | | 8 replies (last May 25, 2019) | Reply
Post ID: @OP+J2A8hij

8 replies (most recent on top)

Bernard was unethical and drove WFT into the ground. No mention of all the investigations into WFT and the big fines they had to pay for numerous violations - SEC, bribery etc. Also, WFT had to restate its financials for multiple years. He and the entire board that existed during that time should had been removed. His salary along with other upper management was not in line with the market. They were all overpaid. He was a horrible CEO who was not in touch with the real world and did not care about his employees. It was very simple, his way or you were out. Don’t know how he lasted that long. Everyone was celebrating when he got fired. Best thing that ever happened.

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Post ID: @gcgsq+J2A8hij

Bernard was a crook, end of story.

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Post ID: @3Rsyi+J2A8hij

Bernie...strange to find you in a place like this. Thanks for your back story.

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Post ID: @fgwk+J2A8hij

Why are you posting the info here?

You want to be the next CEO?

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Post ID: @2lgt+J2A8hij

Hey @J2A8hij-rif the lease agreement was up on the 515 POB and the rates were going to go up. The short story is WFT got a better deal on 2000 SJP than what the 515 POB would have cost.

More details are here: https://en.wikipedia.org/wiki/2000_St._James_Place

But yes, it is true that office spaces within SJP (or 515 POB for that matter) are sometimes made by RE and JLB due to internal politics, including assignment of parking spaces. Just don't unpack and you'll be good.

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Post ID: @1gor+J2A8hij

Maybe stop wasting money on unnecessary office moves. Seems like every week they are paying movers to move people from one floor to the next then back again. What a waste!! Should have never moved out of 515 building.

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Post ID: @rif+J2A8hij

Read the book "The Seven Sisters".

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Post ID: @vxp+J2A8hij

Thanks for the resume, Bernie.

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Post ID: @nxa+J2A8hij

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