Oilfield services giant Baker Hughes is restructuring its business organisation from four product companies into two segments.
From 1 October, the company’s oilfield services and oilfield equipment units will become oilfield services & equipment, while industrial & energy technology is the new name for turbomachinery and process solutions combined with digital solutions.
Chief executive Lorenzo Simonelli said: “We have continuously looked to ensure Baker Hughes can operate in any environment and play a clear role in helping to address the energy trilemma, balancing energy security, sustainability and affordability.”
“Our updated structure will allow us to deliver the technologies that the energy transition will demand by further strengthening our existing customer relationships and allowing more operational flexibility, maintaining size and scale to maximise technology investments and capital returns to our shareholders.”
Reporting on Simonelli’s address to the Barclays CEO Energy-Power conference held on Tuesday, Baker Hughes said the restructuring means it will be able to adapt more quickly to changing energy markets, reduce costs, and increase operational flexibility under more focused management.
The restructuring is expected to deliver at least $150 million in cost reductions by 2023, along with 25% fewer people on the executive management team.
Baker Hughes is the latest big company from the oil and gas sector to announce organisational streamlining and cost cutting.
As part of the restructuring, Maria Claudia Borras steps into the role of executive vice president of oilfield services & equipment and Rod Christie becomes executive vice president of industrial & energy technology.
Meanwhile, Jim Apostolides will take the post of senior vice president of enterprise operational excellence, overseeing supply chains, health, safety, environment and quality, and environmental, social and governance functions.
Elsewhere, Chevron is set to consolidate its upstream, midstream, and downstream segments and will combine its upstream business into two regions — Americas and international.
Shell, too, has simplified its business to become a UK-based company, rather than splitting its headquarters between London and The Hague.