One of the world’s biggest oil service companies, Baker Hughes, has announced plans to simplify its organization in order to improve profitability and position for growth, reports Bloomberg News.

Among other things, this means that starting Oct. 1, the company will have two reporting business segments rather than the four segments.

Going forward, the two segments will cover Oilfield Services & Equipment and Industrial & Energy Technology.

The restructuring is intended to simplify operations, improve profitability, spur growth, meet customer needs, and generate solutions for energy and industrial markets, notes 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,” says Chairman and Chief Executive Officer of Baker Hughes Lorenzo Simonelli.

The company expects that the restructuring could lead to USD 150m in cost reductions, serving to maximize shareholder value.

Baker Hughes’ share price is up 0.9% at USD 25.50 in pre-market trading.

Baker Hughes weakened by Russian activities in Q2

Yet another oil service giant leaves Russia