Baker Hughes is restructuring, simplifying the organization

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Four product companies will become two business segments and the corporate structure will be streamlined

Energy technology company Baker Hughes Company has announced a restructuring and streamlining of its organization to accelerate its strategic transformation in the rapidly changing energy and industrial markets. The move includes the restructuring of four product companies into two business segments, as well as the streamlining of the company’s corporate structure, which is expected to generate at least $150 million in cost savings and form the basis for further improvement in margins, the company said.

Lorenzo Simonelli, President and CEO, Baker Hughes Company

“We have continually ensured that Baker Hughes can operate in any environment and play a clear role in helping to solve the energy trilemma – balancing energy security, sustainability and affordability. Today, we are deliberately taking another step in our strategic journey to transform and simplify our operations and position Baker Hughes for the future,” said Lorenzo Simonelli, President and CEO.

“Our updated structure will allow us to deliver the technologies the energy transition will demand by further strengthening our relationships with our existing customers and enabling greater operational flexibility, maintaining size and scale to maximize technology investments and returns of capital to our shareholders,” he added.

Effective October 1, the company will be formally restructured into two business segments:

  • Oilfield Services & Equipment (OFSE) incorporates the current product companies Oilfield Services (OFS) and Oilfield Equipment (OFE).
  • Industrial & Energy Technology (IET) incorporates current product companies Turbomachinery & Process Solutions (TPS) and Digital Solutions (DS).

In addition, the following changes will be effective for the management team reporting to Simonelli:

  • Maria Claudia Borras will become Executive Vice President (EVP) of OFSE. Borras previously served as executive vice president of OFS since 2017.
  • Rod Christie becomes Executive Vice President of the IET. Christie was previously EVP of TPS since 2017.
  • Jim Apostolides assumes the newly created role of Senior Vice President (SVP) of Corporate Operational Excellence, overseeing the company’s consolidated Supply Chain Centers of Excellence; Health, Safety, Environment and Quality (HSEQ); and environmental, social and governance (ESG) functions. The 23-year veteran of the company previously served as SVP of Corporate Excellence.

Baker Hughes said it plans to continue to improve operational execution and reshape the organization, executing on its strategic priorities with the goal of improving returns, generating strong free cash flow and delivering value and returns to shareholders.

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