Baker Hughes Cuts Costs Following Scrapped Halliburton Merger

In the wake of its failed merger plans with Halliburton Co., Baker Hughes Inc. announced plans to cut costs and buy back $1.5 billion of its shares and $1 billion of debt. The buyback funds come courtesy of the $3.5 billion breakup fees Baker Hughes received from Halliburton, when the deal was called off.

The Houston-based company also indicated it would cut costs totaling $500 million, saying it would “take immediate steps to remove significant costs that were retained in compliance with the former merger agreement.” Baker Hughes also said it was examining other “structural changes” to help improve efficiencies while reducing costs.