Schlumberger Ltd. (NYSE: SLB) joined a number of companies starting off 2016 with fewer employees, less value on their books and uncertainty.

The oilfield services giant, in the process of acquiring Cameron International (NYSE: CAM), took a $1.6 billion pre-tax impairment in fourth-quarter 2015, including $776 million for North American fracking assets, $269 million in asset write-downs and other items.

The company also said it would cut 10,000 workers in anticipation of an extended activity weakness in the first half of 2016. Including its most recent layoff, Schlumberger spent $920 million in 2015 on pre-tax workforce reduction costs.

Analysts have forecast that the oil and gas industry will likely see widespread headcount reductions amid weak commodity prices. To begin January, companies have already announced layoffs and giant devaluations of their assets.

Schlumberger had said Jan. 15 that it would cut about 9,000 employees globally.

“We implemented another significant adjustment to our cost and resource base during the fourth quarter,” said Paal Kibsgaard, chairman and CEO. “This led us to recognize in the fourth quarter $530 million in pretax restructuring charges for expanding the incentivized leave of absence program and reducing our workforce.”

Schlumberger’s write downs put it in sour company with Kinder Morgan Inc. (NYSE:KMI), which recently said it will write down $1.15 billion in value due to a decline in the market value of the company and similar midstream outfits.

Schlumberger also joined Southwestern Energy Co. (NYSE: SWN), which said it would lower its headcount by 1,100 workers. The move followed a smaller workforce reduction in third-quarter 2015.

“While SWN’s production will decline, we estimate by about 6% in 2016 and another 13% in 2017, the upshot is the deleveraging of the balance sheet,” said Charles Robertson II, an analyst for Cowen and Co.

Schlumberger said that in spite of the challenging business landscape, the company generated $5 billion in free cash flow in 2015 after capex of $2.4 billion and $1.4 billion in investments.

After dividends, the company’s free cash flow was about $165 million, said Bill Herbert, co-head of securities for Simmons & Co. International.

For the first half of 2016, Herbert summed up the company’s outlook in one word: “grim.”

However, Schlumberger Production Management (SPM) investments in the fourth quarter were $603 million compared to $350 million for the previous three quarters combined.

The added investments could mean “a higher call on SLB balance sheet due to client needs,” Herbert said, adding SPM investment could increase meaningfully in 2016.

In addition to its pending $14.8 billion acquisition of Cameron, Schlumberger spent about $500 million on technology acquisitions while increasing net debt by $160 million.

“Our ability to generate cash in this environment has been unmatched in the oilfield services industry, and has given us an unrivaled ability to capitalize on a variety of significant business opportunities,” Kibsgaard said.

Darren Barbee can be reached at dbarbee@hartenergy.com.

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