Schlumberger cuts 11,000 more jobs as earnings fall

Oil-services giant Schlumberger said Thursday it would cut 11,000 more jobs as its first-quarter earnings tumbled after low crude prices forced it to cut drilling.

Schlumberger chief executive Paal Kibsgaard said the latest round of cuts was caused by a severe decline in North American land drilling and by reduced investment by oil companies overseas.

Thursday's job cuts were announced on top of 9,000 layoffs already planned in January. Schlumberger currently employs 115,000 around the world.

"In spite of the detailed preparations we made in the fourth quarter, the abruptness of the fall in activity, particularly in North America, required us to take additional actions during the quarter," Kibsgaard said.

"These included the difficult decision to make a further reduction in our workforce of 11,000 employees, leading to a total reduction of about 15 percent compared to the peak of the third quarter of 2014."

The oil services company, whose clients include ExxonMobil, BP and other major firms, took a $390 million charge in concert with the job cuts.

Earnings for the first quarter fell 38 percent from a year ago to $988 million. Revenues dropped 8.8 percent to $10.25 billion.

Schlumberger shares rose 2.5 percent in after-hours trade to $94.21