Headcount reductions are expected in the oil and gas industry this year, according to a survey by retained executive search firm Pearson Partners International. The survey of senior oil and gas executives found 36% expect lower headcount in 2015. That compares with about 22% who expect to grow headcount and 42% who expect it to remain the same.

The respondents’ five-year outlook is optimistic, although most expect their industry segments to have a challenging year in 2015, largely due to lower oil prices.

Survey participants were asked to identify the top talent-related challenges that they expected their industry segment to experience over the next five tears. The top issue cited was the “Great Crew Change,” or the retirement of key personnel expected in the near future. The second-most significant talent-related issue is the shortage of technical talent, such as engineers and geoscientists. The third most-cited issue was the lack of leadership talent.

While oil and gas companies (majors, independents, NOCs) have a more balanced view of their headcounts in 2015, the suppliers (oilfield equipment and services suppliers, drilling contractors, EPC companies, etc.) expect to see greater headcount reductions, according to the report. And since the survey was conducted, Schlumberger announced it will lay off 9,000 employees; Baker Hughes announced 7,000 layoffs; Weatherford announced 8,000 layoffs; and Halliburton announced 1,000 layoffs in the Eastern Hemisphere and hinted that there might be more.

The survey was conducted between Dec. 8 and Dec. 12, 2014. Of the 205 participants, 63% are at the C-level or VP level. About 80% of the participants reside in the US, with the remainder residing in a variety of countries worldwide.