Halliburton to Furlough 3,500 Workers in Houston
Amid ongoing volatility in the energy markets and the global economy, oilfield services provider Halliburton has decided to implement a mandatory furlough for about 3,500 employees in Houston. It will occur at its North Belt campus beginning March 23.
During the furlough, which will last up to 60 days, employees will work a one-week on, one-week off working schedule and will not be paid or permitted to perform any work on behalf of the company on their week-off, a company spokesperson told Rigzone in a written statement.
Employees’ benefits, including health insurance, will remain in place during the furlough period.
“We believe moving to this schedule will allow us to best manage costs and provide full benefits for our employees during this difficult market,” the spokesperson added.
The move comes on the heels of several exploration and production companies – especially ones with hefty bets on shale — dialing back operational and spending plans for 2020. As more drilling plans are placed on hold and COVID-19 continues to slash billions of dollars off the market, the oilfield services sector will continue to take hits on both activity levels and operational costs.
Under current market conditions, Rystad Energy recently estimated that more than 200 oilfield service companies could go bankrupt in Europe. Rystad added that a recovery back to 2019 levels is likely to happen from 2024.
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