Halliburton Cuts Jobs as Oil Prices & Demand Pressure Industry

Halliburton Company HAL has reportedly begun cutting staff as the energy sector faces falling prices, rising costs and shifting global dynamics. The move follows a broader industry trend of layoffs as oil activity cools, leaving service providers under significant pressure.

HAL Responds to Weak Q2 Earnings & Soft Market Outlook

Halliburton’s second-quarter results have not been very impressive, with adjusted net earnings per share of 55 cents declining about 31% year over year and revenues also reflecting a downward trend. The company faced declining earnings and revenues due to softer activity in the North American region, accompanied by weaker customer activity and subdued pricing in pressure pumping.

While reporting the second-quarter earnings, management had anticipated a softer oilfield services market in the near to medium term and had plans to act accordingly, while staying committed to shareholder returns. Halliburton expects both revenues and profitability to remain under pressure in the upcoming quarters, signaling more turbulence ahead for the oilfield services industry.

The Scale of Workforce Reductions

While the full scope of Halliburton’s layoffs has not been disclosed, insiders revealed that multiple divisions saw between 20% and 40% of employees let go in recent weeks. With nearly 48,000 employees as of the end of 2024, the cuts represent a meaningful contraction of its global workforce. These reductions reflect not just company specific challenges but the broader slowdown in oilfield services worldwide.

Declining Oil Prices Strain Industry

Global oil markets have faced headwinds in 2025, with Brent crude prices sliding over 10% this year amid uncertainty in trade policies and higher output from the Organization of the Petroleum Exporting Countries. This downturn has already pushed several companies to trim their workforce, underscoring the ripple effect across the energy value chain. For Halliburton, the slump has translated into weaker demand and shrinking revenues, forcing tough cost-cutting decisions.

HAL’s Zacks Rank & Key Picks

Houston, TX-based Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, engineering and construction services to the energy, industrial and government sectors. Currently, HAL has a Zacks Rank #4 (Sell).

Investors interested in the energy sector might look at some better-ranked stocks like Repsol, S.A. REPYY, Antero Midstream Corporation AM and Enbridge Inc. ENB. While Repsol sports a Zacks Rank #1 (Strong Buy) at present, Antero Midstream and Enbridge carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Repsol explores, develops and produces crude oil products and natural gas, transports petroleum products and liquified petroleum gas and refines petroleum. The Zacks Consensus Estimate for REPYY’s current quarter earnings indicates 47.9% year-over-year growth.

Denver, CO-based Antero Midstream is a leading provider of integrated and customized midstream services. The Zacks Consensus Estimate for AM’s 2025 earnings indicates 20.5% year-over-year growth.

Calgary, Alberta-based Enbridge is a leading energy infrastructure company engaged in the transportation of energy through the most extensive and advanced crude and liquids pipeline system. The Zacks Consensus Estimate for ENB’s 2025 earnings indicates 9.5% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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