UK-based operator Petrofac has become the most recent company to announce capital expenditure cuts and job losses. Many companies have reduced costs and spending in recent weeks in an attempt to shore up their finances ahead of a Covid-19 downturn.
One-fifth of workers will be let go, while two-fifths of capital expenditure will be cut. The company said “most” of its remaining employees, including board members, will take a 10-15% pay cut.
Other staff will be furloughed as the company aims to reduce non-staff costs by 25%.
In a statement, Petrofac said its order intake had increased by $2bn in the first quarter. It said: “We believe that these factors, together with a capital light business model and a strong competitive position in the Middle East where the cost of production is low, will protect us against near term headwinds.”