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How Halliburton’s (HAL) Sweeping Layoffs Amid Industry Pressures Have Changed Its Investment Story

Simply Wall St · 09/09/2025 16:36
  • In recent weeks, Halliburton initiated substantial workforce reductions across several divisions, cutting 20%-40% of jobs amid escalating industry headwinds such as rising costs and declining oil prices.
  • These workforce changes highlight an internal restructuring aimed at improving efficiency even as Halliburton maintains its leadership in hydraulic fracturing and completions.
  • We’ll examine how Halliburton’s large-scale layoffs may alter its investment narrative and outlook on operational efficiency.

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Halliburton Investment Narrative Recap

To own Halliburton stock, an investor needs confidence in the persistence of global energy demand and the company’s ability to deliver profitable oilfield services, even as headwinds buffet the sector. While the recent 20%-40% workforce cuts underscore management’s drive to restore efficiency amid rising costs and slumping oil prices, these actions do not appear to fundamentally alter the main short-term catalyst, an upturn in North American drilling activity, nor do they reduce the overarching risk from overexposure to cyclical regional slowdowns.

The most relevant recent company announcement is Halliburton’s Q2 2025 earnings release, which revealed a substantial year-over-year profit decline and weaker net margins. These results highlight how cost inflation and softer North American activity, which prompted the staff reductions, remain central to the current investment case.

In contrast, investors should be aware that the company’s significant dependence on North American shale leaves it increasingly vulnerable to sharp downturns in...

Read the full narrative on Halliburton (it's free!)

Halliburton's outlook suggests revenues of $22.1 billion and earnings of $2.0 billion by 2028. This is based on an annual revenue decline of 0.2% and a $0.1 billion increase in earnings from the current $1.9 billion level.

Uncover how Halliburton's forecasts yield a $26.54 fair value, a 22% upside to its current price.

Exploring Other Perspectives

HAL Community Fair Values as at Sep 2025
HAL Community Fair Values as at Sep 2025

Simply Wall St Community members offered 12 unique fair value estimates for Halliburton, ranging from US$20.00 to US$41.12 per share. With this breadth of opinion, remember that overreliance on North American shale remains a key risk that could shape future expectations for revenue and profit stability.

Explore 12 other fair value estimates on Halliburton - why the stock might be worth as much as 89% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.