Halliburton ‘significantly reducing’ workforce amid falling oil prices, coronavirus pandemic
HOUSTON – Top U.S. oilfield services provider Halliburton confirmed to KPRC 2 Tuesday that the company will be laying off several workers.
The company issued a statement that said:
Halliburton confirms we are significantly reducing our workforce. This was a difficult decision but is a necessary action as we work to successfully adapt to challenging market conditions. As we make workforce reductions, we are taking numerous other actions to reduce our costs, including reducing the salaries of the Halliburton Executive Committee. The reductions are taking place across the entire organization.
Workers in Texas, Oklahoma and other company locations will be affected by the decision.
When the coronavirus pandemic first broke out and oil prices saw a dramatic drop, the company told KPRC 2 it would furlough 3,500 employees in Houston for 60 days as shale producers slash spending amid falling oil prices.
“To best position our company in the current environment, Halliburton is implementing a mandatory furlough for employees at its North Belt campus in Houston beginning March 23,” spokesperson Erin Fuchs wrote in an email. “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.”
Fuchs confirmed that all employees’ benefits 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,” Fuchs wrote.
Non-conventional producers are expected to reduce their investments by 25-50% of planned spending this year, according to a report by Oil and Gas Magazine.
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