Current BHI Stock Info

Three major organizational changes are coming to Baker Hughes, the company announced on May 25, 2016.  The changes follow the company’s May 2 announcement of its plans to capitalize on its leadership position as a product innovator by simplifying its business structure, reducing costs and enhancing its commercial strategy.

The company plans will consolidate its regional operations structure into one global entity that will deliver “strong operating profits,” combine its products and technology groups into one organization, and form a new commercial strategy group.

Richard Williams, formerly the President of the company’s North America region, will lead the transformation of the company. He will lead the implementation of new initiatives and serve as a senior advisor to the executive leadership team to eliminate any effect on operational performance and customer commitments.

“These changes to our organizational design and leadership team demonstrate that we are moving quickly and decisively to execute on the strategy we outlined earlier this month,” said Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes. “While we have more hard work ahead of us, the entire Baker Hughes team is committed to building on our strong foundation as a product innovator to deliver outstanding performance to our customers and significant value to our shareholders.”

The changes follow the dissolution of a merger agreement between Baker Hughes and Haliburton. Low crude oil prices have forced oil service providers to seek continued operational and financial efficiencies, spurring M&A activity to acquire revenue, product lines and customers and help them realize those synergies.

Following intervention from the U.S. Justice Department, it became clear that Baker Hughes would need to address these efficiencies internally. These changes are a direct result of Baker Hughes seeking internal optimization.


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