Baker Hughes undergoing restructuring to position itself strategically in the evolving energy space
In a statement Baker Hughes Company announced that it is simplifying it is restructuring and simplifying its organisational structure and accelerating its strategic transformation in order to simplify operations, enhance profitability, drive growth, and meet customer demands while continuing to produce solutions in the rapidly evolving energy and industrial markets.
“We have continuously looked to ensure Baker Hughes can operate in any environment and play a clear role in helping to address the Energy Trilemma – balancing energy security, sustainability, and affordability. Today, we are taking a deliberate next step in our strategic journey to transform and simplify our operations and position Baker Hughes for the future,” said Lorenzo Simonelli , Baker Hughes’ CEO and chairman.
“Our updated structure will allow us to deliver the technologies that the energy transition will demand by further strengthening our existing customer relationships and allowing more operational flexibility, maintaining size and scale to maximize technology investments and capital returns to our shareholders.”
Baker Hughes is restructuring its core four product companies in order to focus on two of its reporting business segments while streamlining its corporate structure. The restructuring is expected to provide $150 million in cost synergy and create a baseline for further improvements on its margin.
Starting from October 1, Baker Hughes will be formally restructured into two business segments. While one will focus on Oilfield Services & Equipment (OFSE) which will see the integration of its Oilfield Services (OFS) and Oilfield Equipment (OFE) product companies, the other will see the integration of its Industrial & Energy Technology (IET) companies which will see its Turbomachinery & Process Solutions (TPS) and Digital Solutions (DS) merged into one.
The development comes in the wake of Baker Hughes identifying OFSE and IET as two core business areas, which have cost synergy. It is undergoing restructuring after carefully evaluating all aspects of its long-term strategy, organizational structure, corporate performance, and the market outlook across its businesses.
Through this restructuring Baker Hughes aims to transform itself into a pre-eminent energy technology company, and position itself for the changes unfolding across the energy space.
Effective from October 1, 2022, Baker Hughes will also be making changes to its management team who will report to Lorenzo Simonelli .
“Three years ago we set out on a bold ambition to be an energy technology company and take energy forward. We could not have achieved our goals without the commitment and perseverance of our entire leadership team,” said Lorenzo Simonelli . “I want to thank our departing leaders for their significant contributions towards delivering our strategy as they pursue new opportunities.”
“We have continuously looked to ensure Baker Hughes can operate in any environment and play a clear role in helping to address the Energy Trilemma – balancing energy security, sustainability, and affordability. Today, we are taking a deliberate next step in our strategic journey to transform and simplify our operations and position Baker Hughes for the future,” said Lorenzo Simonelli , Baker Hughes’ CEO and chairman.
“Our updated structure will allow us to deliver the technologies that the energy transition will demand by further strengthening our existing customer relationships and allowing more operational flexibility, maintaining size and scale to maximize technology investments and capital returns to our shareholders.”
Baker Hughes is restructuring its core four product companies in order to focus on two of its reporting business segments while streamlining its corporate structure. The restructuring is expected to provide $150 million in cost synergy and create a baseline for further improvements on its margin.
Starting from October 1, Baker Hughes will be formally restructured into two business segments. While one will focus on Oilfield Services & Equipment (OFSE) which will see the integration of its Oilfield Services (OFS) and Oilfield Equipment (OFE) product companies, the other will see the integration of its Industrial & Energy Technology (IET) companies which will see its Turbomachinery & Process Solutions (TPS) and Digital Solutions (DS) merged into one.
The development comes in the wake of Baker Hughes identifying OFSE and IET as two core business areas, which have cost synergy. It is undergoing restructuring after carefully evaluating all aspects of its long-term strategy, organizational structure, corporate performance, and the market outlook across its businesses.
Through this restructuring Baker Hughes aims to transform itself into a pre-eminent energy technology company, and position itself for the changes unfolding across the energy space.
Effective from October 1, 2022, Baker Hughes will also be making changes to its management team who will report to Lorenzo Simonelli .
“Three years ago we set out on a bold ambition to be an energy technology company and take energy forward. We could not have achieved our goals without the commitment and perseverance of our entire leadership team,” said Lorenzo Simonelli . “I want to thank our departing leaders for their significant contributions towards delivering our strategy as they pursue new opportunities.”
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