Receive our newsletter – data, insights and analysis delivered to you
  1. Uncategorised
April 6, 2020

Petrofac cuts 20% of staff and 10% of pay

By Matthew Farmer

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.”

Related Companies

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU