Calfrac Well Services slashes workforce

Calfrac Well Services Ltd. says it has shrunk its workforce significantly in Canada and the United States since the end 2014, when the worst oilpatch downturn in decades began to take hold.

The Calgary-based oilfield services firm says it has reduced its headcount by 40 per cent in Canada and by 60 per cent in the United States.

At the end of 2014, Calfrac had a total of 4,900 employees, but in regulatory filings, it does not break down how many employees worked in each region.

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Meanwhile, Calfrac posted a net loss for the fourth quarter of $141.5 million, versus a profit of $26.5 million during the same period a year earlier.

Revenues fell 62 per cent during the last three months of the year to $286.2 million.

Service companies like Calfrac have been hard-hit by the downturn because their customers oil and gas producers have been scaling back on drilling new wells and pressing for lower rates.

"Retaining key employees has always been a keen focus for Calfrac but unfortunately with the current downturn shaping up to be the worst in decades, the company has had to make some difficult decisions in order to position itself to survive in this environment, and has been forced to let go of some of its longstanding employees," the company said in a release.

For the first time since the late 1980s, global exploration spending has decreased for two consecutive years, Calfrac noted.

"As such, Calfrac anticipates equipment utilization in North America will remain low for the majority of 2016, with the potential for a modest improvement towards the end of the year."