Nabors, which operates 48 offshore rigs in the US Gulf of Mexico, Alaska and nine other countries worldwide, is feeling the pinch of low oil prices, posting an after-tax net loss of about $US891 million ($A1.2 billion) for the 2014 December quarter.
The depressed result was the product of nearly $1.2 billion in write-downs and other charges, and came despite a rise in revenue year-over-year to $1.78 billion.
Nabors CEO Anthony Petrello said that key impacts on the company's results were end-of-year reductions in drilling activity in the US which materially affected results, a decline in volumes and margins for the company's directional drilling subsidiaries, and the impact of seasonal declines and the low oil price on completion and production services.
The 12% cut to the company's workforce reflects a 20% decline in its US drilling payroll and a 10% decrease in the selling, general and administration parts of the business.
With the company approaching half a century since establishment, Petrello assured the market that the company knew how to weather an industry downturn.
"Based on the concrete steps we have taken recently and in prior years, I have great confidence in the company's ability to manage the current downturn," he said.
"This is not our first rodeo. These initiatives are ongoing and we will modify them as market conditions and our outlook warrant."
