Baker Hughes cuts number of operating segments in half in reorganization
Baker Hughes (NASDAQ:BKR) disclosed Friday a reorganization of its operating segments, cutting the total number of reportable segments from four to two: Oilfield Services & Equipment and Industrial & Energy Technology.
in an 8-K form, Baker Hughes (BKR) said it believes the new structure "will allow each segment to better adapt to the quickly changing energy markets, and by removing the product company layers, will upgrade a number of key operational processes across our businesses and enhance their economies of scale."
The new Oilfield Services & Equipment segment includes the previous Oilfield Services segment and the Oilfield Equipment segment, operating through four product lines: Well Construction, Completions Intervention & Measurements, Production Solutions, and Subsea & Surface Pressure Systems.
The new Industrial & Energy Technology includes the previous Turbomachinery & Process Solutions segment and the Digital Solutions segment, operating through six product lines: Gas Technology Equipment and Gas Technology Services, collectively referred to as Gas Technology, and Condition Monitoring, Inspection, Pumps Valves & Gears, and PSI & Controls.
Baker Hughes (BKR) shares -2.8% in early trading Friday, as oil-related names post broad losses as WTI crude oil tumbles below $80/bbl for the first time since September.