BP freezes employee pay amid falling crude prices

London

BP plc, Europe's third-largest oil company by market value, will freeze employee pay in the latest example of cost cuts as the world's top oil companies respond to plunging crude.

The company "needs to take a number of measures in response to the harsh trading environment," Chief Executive Officer Bob Dudley said in a memo to staff on Monday. "One of the measures we are taking is a general freeze to base pay for 2015, with only a few exceptions." BP, which employs more than 80,000 people around the world, is the first global oil company to announce a pay freeze for staff. Oil has slumped to under US$50 a barrel, less than half the price six months ago, forcing producers to review spending on new projects and reduce staff.