Average benefits with 6% matching 401K (good luck making it to fully vested status). Service firms in the shale industry, where Schlumberger does its North American business, will be hit the hardest, Rystad says, perhaps seeing cuts of up to 32%, as the price shock threatens new drilling activity. Thursday's job cuts were announced on top of 9,000 layoffs already planned in January. The company will also institute furlough programs in some of its business lines. Published Apr 9, 2020 at 9:58 am | Updated Apr 9, 2020 at 11:25 am 1 min to read Schlumberger, an international oil field company with three offices in … An increase in production among OPEC countries is expected to produce a glut of available product, while social distancing measures taken in response to the COVID-19 pandemic are slicing deep into demand for transportation fuels. The letters to some hourly staff informing them of a wage reduction, one of which was shared with Business Insider, appear to use a template for a promotion, not a salary cut, two employees said. Click here to subscribe to Insider Energy, Business Insider's weekly energy newsletter. In another voluntary program, workers are furloughed one day per week "as agreed between the employee and his or her manager.". Maps of counties in the STACK play showing townships and ranges, enormous pressure on both the supply and demand side of the industry, Halliburton Co. is furloughing 3,500 Houston employees, making cuts to employment and hours among its workforce, is also laying off employees in Midland, Texas, also announced a multibillion-dollar spending cut March 23, Schlumberger produced $10.84 billion in 2019 North American revenue. "Before, we would do 12-hour days," the person said. In late March, the research firm Rystad Energy estimated that more than a million oilfield service jobs, or 21% of the workforce, would evaporate as a result of this downturn. Experience is always good, if you want to stay in this industry after layoffs. The Schlumberger memo reveals that in one furlough program — which the company calls involuntary — employees are furloughed for five days per month. "For some people, it's a day in the week and for some people, it's two weeks [straight] in a total of ten weeks," one Houston-based employee said. Schlumberger last week said it would reduce its 2020 capital spending budget by 30% due to the price crash, joining a host of major energy companies … Visit Business Insider's homepage for more stories, aggressive actions in recent weeks to cut spending, more than a million oilfield service jobs, Layoffs, dividend cuts, and budget reductions: We're tracking how 18 oil giants from Shell to Exxon are responding to the historic oil price meltdown. Shares of Schlumberger were up … Prompt cost reduction measures through headcount rationalization, furloughs, and lower manufacturing costs contributed to … "I've been there for nine years. Schlumberger is cutting pay for some workers, as well, according to another letter that Business Insider reviewed. Leaked documents reveal Schlumberger furloughed staff and cut wages as it faces a historic oil price meltdown, © Kirk McKoy/Los Angeles Times via Getty Images. "I was averaging 69 hours a week. The furlough is just one measure Schlumberger is taking to cut spending. When the last oil boom peaked in 2014, Schlumberger had 120,000 employees, the Journal reported. But at the same time, I'm not bitter at all. Schlumberger produced $10.84 billion in 2019 North American revenue. Halliburton went from $25.48 in 2009 to … That's more than half your pay that you just lost when you lose overtime.". These changes are hard for employees to stomach, whether or not they've been through downturns before. In addition to the furlough, their wages have been cut by about 15%, they said. The company, he said, also stands to save $25 million a quarter from first-quarter layoffs. Business Insider has verified their identities. The company’s total 2019 revenue of $32.92 billion was basically flat compared to 2018. In a letter sent to all North American employees that was obtained by Business Insider, the company said it was implementing two furlough programs for its North American staff starting on April 12. The statement didn't address pay-rate reductions. A leaked internal memo and wage-reduction notice reveal in new detail how the pandemic-fueled demand crunch is hitting Schlumberger, the world's largest oilfield services company. Read more: Layoffs, dividend cuts, and budget reductions: We're tracking how 18 oil giants from Shell to Exxon are responding to the historic oil price meltdown, Like us on Facebook to see similar stories, As hospitals swell, nursing students are tapped to join the front lines for the second time, Driver of truck playing audio similar to Nashville blast message detained. The Houston-based company — which sells technology and services for oil production and exploration — is not alone in taking aggressive actions in recent weeks to cut spending as oil prices collapse to 20-year lows. According to two of the employees, hourly staff in North America — who represent the bulk of Schlumberger's North American workforce — have been hit the hardest. The 21,000 jobs correspond to almost […] That’s down from $11.98 billion in 2018, according to the company’s year-end financial report. The company has since cut at least another 1,500 from its North American workforce, CEO Olivier Le Peuch, told investors in a recent earnings call. Schlumberger is a large oilfield services company. “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 23 March. Schlumberger was already entering this downturn with more debt, relative to the last oil downturn around 2016, the Wall Street Journal reports. At the same time, Schlumberger’s support personnel will take on modified work hours, which will result in reduced salaries as permitted by local laws, Felix said. Producers Alliance calls on regulators to prevent waste of state oil, Georgia Senator discloses more stock trades. Like many large corporations, salary makes up the minority of Schlumberger’s executive compensation, however. 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