Weatherford International Ltd: Cutting Revenue in Order to Grow Margins
Shares of Weatherford International Ltd (NYSE: WFT ) surged to multi-year highs following the news of a solid quarter. The oilfield services firm has long been pressured by disappointing results and struggling operations, but the management team might finally be focused on the right metrics.
The key to the turnaround is a focus on improving operations and trimming the fat. Weatherford is in the middle of a cost-cutting program that will eliminate 7,000 employees, though the company suggests that the cut is only eliminating duplicated functions and operations. When complete, the move will save the company $500 million annually. The company's recent results suggest that it is working.
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