Thread regarding Schlumberger Ltd. layoffs

Wow, Kibsgaard is one smart cookie..

Schlumberger is going to make it through quite well if he keeps going at this pace.

So, to translate this headline, "SLB lays off 10k workers, and is approved to purchase $10B of its own stock."

What that really means, is EVEN IF REVENUE IS FLAT or LOWER, earnings/profitability will be UP (due to lower overhead/employee expense), and even if REVENUE IS FLAT OR LOWER, earnings per share (the KEY CEO metric) will be UP, due to lower stock float (number of shares publically available).

Also with lower stock quantity publically available, lower revenue will still equate to not having to drop the dividend.

So let's see higher profitability and higher EPS... that's the job of of a CEO.

Kibsgaard is spending $10B in CASH (or more technically is approved to spend up to $10B), and is investing it back into his own company. That means that he can't think of a better way to improve the bottom line and having $10B to work with.

It also shows where he is talking out of both sides of his mouth, when he says that SLB is investing in the "latest technology" and "R&D." No he isn't, or at least he's not spending as much as HE COULD because he is using $10B to buy back stock. Which means that he doesn't see $10B worth of probable value to be had in the current R&D and latest technology findings. But, it does sound good to investors (unsophisticated types that can't read between the lines that is).

What sounds good to the sophisticated investors? Higher profitability and higher Earning per share.

Personally, it's brilliant!!