Halliburton Reduces Bonuses, Pay Increases due to Market Conditions

In efforts to preserve jobs and reduce customer costs in a difficult market, Halliburton Co. is implementing several cost-cutting measures, company spokesperson Emily Mir confirmed to Rigzone in an email.

The company sent an internal communication to its employees outlining steps the company is taking to sustain the low oil price environment. They include:

• Halliburton executive and senior management base salary reductions implemented in 2015 will remain in effect.
• Bonus opportunities for management have been significantly reduced or eliminated.
• Annual pay increases for all employees have been suspended.
• Halliburton will continue to match dollar for dollar on the first 4 percent employees contribute to their 401k retirement and savings plan and 50 cents on the next 2 percent – for a total match of 5 percent. However, the company has suspended its 4 percent discretionary contribution to the plans.

Halliburton, who announced it would cut its workforce by an additional 8 percent (5,000 jobs) in February, has already reduced its global headcount by 25 percent since 2014.

Mir stated Halliburton believes the additional cost-cutting steps communicated to employees was “necessary to best position itself in the ongoing market and lower costs for its customers.”