Smith Lays Off 38 in Irvine, Houston

In response to a continuing slump in the market for oil-drilling equipment, Smith International Inc. Friday laid off 38 employees in two divisions.

The most recent layoff included 33 people in the Dyna-Drill downhole motors division in Irvine, and five employees of Houston-based Datadril, which provides measurement-while-drilling and directional drilling services for the oil and gas industry.

Smith has reduced its workforce by 12% since the end of 1984. It now employs 7,800 worldwide, according to company spokeswoman Val Maxey.

The company, which reported a loss of $50 million for the first half of fiscal 1985, has been streamlining operations and cutting back on tool and equipment production. The oil field services industry in general has been suffering from low oil prices, fierce price competition and a slowdown in domestic drilling.