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Halliburton suspending annual salary hikes to avoid more layoffs
[HOUSTON] Halliburton Co told workers it's suspending salary increases and eliminating some management bonuses to help the world's second-largest oil services provider weather the worst crude market downturn in decades.
After laying off more than a quarter of its global workforce since crude prices began falling in 2014, the Houston-based company said the further cost-cutting measures are meant to preserve jobs. Halliburton said two weeks ago it's cutting another 5,000 workers, or 8 per cent of its remaining workforce.
The company sent a note to employees about the additional cost-cutting steps, Emily Mir, a spokeswoman, confirmed in an e-mail Wednesday. In addition, the world's largest provider of fracking services is keeping in place the base salary cuts rolled out last year for executives and senior managers, according to her e-mail.
"Halliburton believes taking such measures was necessary to best position itself in the ongoing market and lower costs for its customers," Ms Mir wrote.
Oilfield service providers were the first to feel the pain of the crude market crash. The sector continues to be most heavily affected after customers slashed more than US$100 billion in spending last year and promised more cuts to come this year. Brent crude, the global benchmark, has fallen by nearly two thirds during the downturn.