Halliburton reports $3.2 billion loss after failed Baker Hughes deal, cuts 5,000 jobs

Halliburton reported a $3.2 billion loss in the second quarter Wednesday, largely because of a $3.5 billion breakup fee it paid rival and former acquisition target, Baker Hughes.

Halliburton’s acquisition of Houston-based Baker Hughes fell apart in early May after the Justice Department intervened because of anti-competitiveness concerns.

READ ABOUT THE FAILED DEAL: Halliburton, Baker Hughes call off merger

Halliburton said it cut about another 5,000 jobs globally during the second quarter, bringing the total workforce to just more than 50,000 people. Halliburton has eliminated more than 35,000 jobs in two years, roughly 40 percent of its total jobs during that timeframe.

Halliburton’s second-quarter revenue of $3.8 billion was off almost 35 percent from the same period a year earlier, when the company recorded earnings of $54 million. In the first quarter of this year, Halliburton posted revenue of $4.2 billion and a $2.4 billion net loss.

Halliburton’s North American revenue fell 15 percent in the second quarter, Chairman and CEO Dave Lesar said, while the continent’s rig count fell by a steeper 23 percent.

In this April 15, 2009, file photo, an unidentified worker passes a truck owned by Halliburton at a remote site for natural-gas producer Williams in Rulison, Colo. (AP Photo/David Zalubowski, File)
(AP Photo/David Zalubowski, File)

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Lesar was more optimistic after the rig count stopped declining in June.

“We believe the North America market has turned,” Lesar said in a statement. “We expect to see a modest uptick in rig count during the second half of the year. With our growth in market share during the downturn, we believe we are best positioned to benefit from any recovery, including a modest one. Internationally, we are maintaining our service footprint, managing costs and continuing to gain market share.”

No new job cuts were announced, but Halliburton has eliminated about 33,000 jobs since late 2014 — more than one-third of its global workforce.

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