Oilfield services company Baker Hughes is implementing a pay cut to its employees as the industry continues to adjust to the low oil price environment.
In an emailed statement to Rigzone, company spokesperson Melanie Kania confirmed that in response to challenging industry conditions, Baker Hughes implemented “a temporary 5 percent pay reduction for certain U.S. employees during the last 14 weeks of 2016.”
Affected employees will receive four additional paid holidays. Baker Hughes did not disclose which departments would be affected.
The pay cuts were implemented as a way to prevent further layoffs.
Baker Hughes laid off 18,000 workers last year and 2,000 employees in 1Q 2016. The company reported revenue of $2.4 billion, according to its second quarter earnings report, down $1.6 billion (39 percent) compared to 2Q 2015.
In a post-earnings conference call July 28, Baker Hughes CEO Martin Craighead said he “didn’t subscribe to the hopeful commentary,” Reuters reported. Craighead also said he believed oil prices needed to be a minimum of the upper $50s per barrel for a sustainable recovery in North America.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you