Weatherford is looking to divest its non-core businesses to cut costs following a troublesome year.
The energy services giant reported a decrease in revenue to $3.74billion (£2.24billion) in the fourth quarter of 2013 from $4.06billion in 2012.
The company blamed extreme weather conditions in its key markets, disruptions in the Middle East and a higher-than-expected tax rate for the decline.
Although the overall operating income margin (before research and development and corporate expenses) was 11.2%, the firm registered a negative operating income margin of (6.9)% for its non-core businesses, primarily: pipeline and specialty services, testing and production services, drilling fluids and wellheads.
In its quarterly review statement the company said it was looking to complete the cash sale of the four businesses by the end of this year to reduce itsdebt of $8.29billion.
“While the fourth quarter results were disappointing, Weatherford is now actively engaged in transforming itself into a lean, deleveraged and focused organization going into 2014,” said Bernard J. Duroc-Danner, chairman, president and chief executive at Weatherford.
In addition, Weatherford is also planning to cut 7,000 jobs in the first half of 2014, hoping to generate cost savings of $500million.
“We have made significant progress on this front with 6,192 positions already identified for termination starting the end of the first quarter with estimated annualized cost savings of $466 million,” Duroc-Danner said.
“In summary, Weatherford is committed to transforming itself in 2014 to emerge as a leaner, more efficient and stronger company, with high margin core product lines, strategically positioned and focused on growing them.
“Our medium-term objective is a 25% debt to capitalization ratio.”