The Associated Press
HOUSTON (AP) - Oil services company Baker Hughes Inc. says it will lay off about 7,000 workers as it prepares for a downturn in orders.
Baker Hughes previously reported a record $663 million in net income in the fourth quarter of 2014, more than double its earnings during the same period of the prior year.
Leading the growth was the company's North American division, which posted revenue of $3.3 billion.
But the Houston-based company said in an earnings call Tuesday that it expects a "sharp drop in product sales" because of the plummeting price of crude.
The layoffs represent about an 11 percent cut to the 62,000-plus employees Baker Hughes says it employs worldwide.
The announcement comes after Schlumberger Ltd. said last week it would reduce its workforce by 9,000 employees.