Weatherford International Ltd. (NYSE: WFT) expects to reap $1.1 billion-$1.3 billion in revenues as it sells four noncore businesses by the end of 2014.

Weatherford has focused teams working to sell its pipeline and specialty services, testing and production services, drilling fluids and wellheads operations. The company also plans an initial public offering (IPO) or spinoff of its land drilling rig business in the fourth quarter of 2014 or first quarter of 2015.

Weatherford, one of the world’s largest diversified oilfield services companies, has also identified thousands of people whose employment will be terminated to cut costs.

“Operational issues continue to plague WFT, so it's nice to see the company lightening its workload through its divestitures and headcount reductions,” said Brian Uhlmer, oilfield services and equipment analyst for Global Hunter Securities LLC. “The 2014 outlook revealed that Latin America would be the only region to see a revenue decline, with all the others experiencing growth.”

Uhlmer said margins should improve globally, thanks to lower costs.

The company intends to use proceeds from asset sales to pay off debt, said James Crandell, managing director at Cowen and Co.

Crandell is forecasting asset sales will total about $1 billion.

At that amount, “net debt should end the year at about $7.1 billion,” he said. “The initial public offering of part of the contract drilling segment is expected to be a 2015 event. We are not incorporating the impact of the potential IPO in our 2015 earnings forecast.”

WFT Value, Debt

Market Cap

$11,965MM

Cash and Investments

$295MM

Debt

$9,235MM

Enterprise Value

$20,905MM

Source: GHS

Weatherford also announced it will cut 7,000 worldwide employees during the first half of 2014 to save $500 million.

“We have made significant progress on this front with 6,192 positions already identified for termination starting the end of the first quarter with estimated annualized cost savings of $466 million,” the company said.

“Cost cuts will also come from shutting down marginal business presence in certain markets that are uneconomic and drain cash. Weatherford doesn’t expect to exit from any country as a whole and is not anticipated to materially reduce our infrastructure footprint,” the company added.

Weatherford is caught between two realities as it tries to transform itself.

“Tension continues to prevail between progress on structural reforms and operational under-delivery,” said Simmons & Co. analyst William Alpaugh. “While free cash flow of $300 million fell well short of targets provided in the third-quarter call, in concert with proceeds garnered from the sale of Borets WFT paid down about $565 million short term debt.”