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.
-Valerie Jones with NEWS | Rigzone