Schlumberger executives take pay cuts as North American workforce is slashed

Schlumberger executives are taking pay cuts while the oil-field services company lays off and furloughs workers in the U.S. and elsewhere in North America.

Citing an "extraordinary business environment" as the coronavirus pandemic and record-low oil prices ravage the industry, Schlumberger said Tuesday that executives and senior managers are voluntarily taking a 20 percent pay cut beginning Wednesday.

The company also is accelerating the restructuring of its North America land-based operations, which includes a combination of layoffs and furloughs by business line and location. The changes are expected to take place over a couple of months.

In other markets around the world, Schlumberger has adopted modified work schedules that will in effect reduce payroll.

Oil companies around the world are making cuts as they try to weather a simultaneous global supply glut and evaporation of demand caused by the pandemic. West Texas Intermediate crude oil is trading around $20 per barrel, a price not seen since January 2002.

Schlumberger, which lost $10.1 billion last year, was already struggling with oil at $50.

Source: houstonchronicle.com