Thread regarding Schlumberger Ltd. layoffs

I got the Rev/employee ratio number from historical data (financial,employee reports). This number has been going up. Which makes sense. The company wants to make more revenue with less people.

Look at Exxon, and you will surprise how high is the Rev/Employee ratio is.

This ratio depends on the industry too... Some industries have low revenue/employee ratios.

You will be surprised how the industry will be in 2017 and 2018.

SLB has its own issue. They are not very competitive in the US market dominated by a lot of smaller service companies and also Hal and Baker.

SLB has an issue with service pricing... Very tough to decrease service prices without losing money in US land. But SLB can count on the international market for profit. Offshore market is not going to recover until 2018...

Pessimism comes from management squeezing employees. Management is squeezed too.

The financial ratios have to be met for each quarter. It is a question of survival, not just pleasing the investors.

SLB should be able to pay for the dividends in 2017.

Q4 2016 will look pretty bad with an international rig counts hitting the bottom.

Rgds

-3aic

Where did you get the revenue/employee ratio? Is it from some credible source? Also, how do you know if the industry will improve in 2017? IEA's outlook for 2017 wasn't very positive. Is it just your guess or based on some facts?

I was not a pessimistic person two years ago, but this management made me skeptical every time. Since the downturn started, I heard "there will be no more layoff" several times from the management, but it just continued. They finally stopped saying that though.

To find out how many people where laid off (i.e. layoff + attrition + retirement - hire), look at revenue.

Management has a Rev/Employee ratio target. They are pretty good at reaching a specific ratio.

Probably around $350k of Revenue per employee.

Happy New Year to everyone. Industry outlook will be improving this year.

Rgds

Also where do you get 34k or 50k? Peak was 128k and current is 85k? That is closer to 43K. No idea about cameron.

It is 14k in 2016

'Officially', close to 34K. However, that doesn't include voluntary retirements, or divisions that were sold off. SLB rarely discusses these details. Probably somewhere between 50-60K people are no longer with the company that were employed in 2013-2014.

Since the downturn started we've laid off over 50k people. This includes layoffs from Cameron since the merger was announced.

Paal Mr fantastic, Supreme leader, mighty transformer

I see around 14kish