Halliburton, one of the world’s largest oilfield services providers, is the latest to announce staff reductions as the U.S. oil industry faces rising costs, falling prices, and heightened volatility. According to sources familiar with the matter, the company has quietly rolled out workforce cuts over the past several weeks, with at least three business divisions losing between 20% and 40% of employees.
US Oil & Gas Operator Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
The scope of the layoffs has not been disclosed, but the reductions come against the backdrop of a weakening oilfield services market. Halliburton ended 2024 with nearly 48,400 employees, underscoring the scale of the adjustment underway.
Oil Prices Add Pressure
Global oil prices have been sliding since January, compounding challenges for the sector. Brent crude, the international benchmark, is trading below $66 per barrel — nearly 20% lower than its January peak above $82. Year-to-date, Brent is down more than 10%, dragged by uncertainty over global trade policies and additional supply from OPEC and its allies.
The timing is particularly difficult for oilfield services companies, which provide the technical expertise, equipment, and labor that enable drilling and production. With operators pulling back on spending, service providers are among the first to feel the pinch.
Halliburton’s Financial Outlook
Halliburton warned investors in June of a sharp decline in full-year revenue and reported a 33% drop in second-quarter profit, citing weaker demand. On the company’s Q2 earnings call, CEO Jeff Miller admitted that the oilfield services market has softened significantly in just the past three months.
“To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term,” Miller said. The company flagged a slowdown in North America and among large national oil companies abroad.
Industrywide Retrenchment
Halliburton is not alone in making cuts. ConocoPhillips announced this week it would slash up to 25% of its staff as part of broader cost-reduction measures. Together, these moves highlight a sector recalibrating to cope with lower commodity prices and unpredictable demand.
As OPEC+ prepares for its upcoming meeting, the group is considering further output increases — a move that could keep downward pressure on prices through the rest of 2025. For oilfield services firms, that means navigating a more cautious investment climate from their customers.
Outlook
The latest round of layoffs at Halliburton underscores a harsh reality: the oilfield services sector is entering another cycle of cost-cutting and consolidation. With Brent crude struggling to find support and operators pulling back on drilling activity, service providers will need to adapt quickly to preserve margins and weather near-term volatility.
While global energy demand remains strong, the path forward for oilfield services will depend on a more stable pricing environment — and renewed confidence from producers to invest in new drilling and completion programs.
