Baker Hughes Restructures Four Product Operations, Makes Management Changes
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Baker Hughes Company said it is restructuring and simplifying its organization and accelerating its strategic transformation. These changes will simplify operations, enhance profitability, and drive growth, meeting customer needs and producing 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, chairman and CEO of Baker Hughes.
“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,” added Simonelli.
Baker Hughes is restructuring its four product companies to focus on two reporting business segments and streamlining its corporate structure, which is expected to deliver at least $150 million in cost savings and form the baseline for further margin improvement. 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.
After identifying OFSE and IET as the two broad business areas in 2021, Baker Hughes has carefully evaluated all aspects of the company’s long-term strategy, its corporate performance, organizational structure, and the market outlook across its businesses. This transformation is the next step in the company’s journey to create the pre-eminent energy technology company, positioning for the changes unfolding across the energy landscape.
Baker Hughes will also be making changes to its management team reporting to Lorenzo Simonelli:
• Maria Claudia Borras is executive vice president (EVP) of OFSE. Borras previously served as EVP of OFS
since 2017.
• Rod Christie is EVP of IET. Christie previously served as EVP of TPS since 2017.
• Jim Apostolides is senior vice president (SVP) of enterprise operational excellence, a newly-created role to
drive better coordination and alignment of key operational areas. Apostolides will oversee the company’s
consolidated supply chain centers of excellence; health, safety, environment, and quality (HSEQ); and
environmental, social, and governance (ESG) functions. He previously served as SVP of enterprise excellence
and has been with the company for 23 years.
“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,” added Simonelli.
About Baker Hughes
Baker Hughes is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, their innovative technologies and services are taking energy forward — making it safer, cleaner and more efficient for people and the planet.
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