Baker Hughes restructures, simplifies organization

Energy technology firm Baker Hughes Company has announced the restructuring and simplification of its organization in a move to accelerate its strategic transformation in the rapidly evolving energy and industrial markets.

The move includes restructuring from four product companies to two reporting business segments plus streamlining of the company’s corporate structure, which is expected to deliver at least $150 million in cost savings and form the baseline for further margin improvement, the company stated.

Lorenzo Simonelli, chairman and CEO, Baker Hughes Company

“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, chairman and CEO.

“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,” he added.

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

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

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 EVP of OFS since 2017.
• Rod Christie becomes EVP of IET. Christie previously served as EVP of TPS since 2017.
• Jim Apostolides assumes the newly created role of senior vice president (SVP) of enterprise 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 company veteran previously served as SVP of enterprise excellence.

Baker Hughes said it plans to continue to enhance operational execution and re-shape 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.