Baker Hughes has temporarily cut pay for some U.S. employees in an effort to avoid more layoffs.
The Houston-based firm told the Houston Business Journal that it will temporarily reduce pay by 5 percent for some U.S. employees.
The pay cut will be in effect for the last 14 weeks of 2016 and employees will be provided with four additional paid holidays.
A Baker Hughes spokesperson told the Houston Business Journal that the temporary pay reductions will allow the firm to “lessen the need for additional workforce reductions.”
Further details about the pay reductions have not been disclosed.
According to Rigzone, Baker Hughes cut 18,000 jobs last year and an additional 2,000 positions in the first quarter of this year as upstreams reduced spends and delayed projects.
Baker Hughes reported $2.4 billion in second quarter revenue, down 39 percent year-over-year.
Net loss attributable to Baker Hughes for the second quarter was $911 million, or $2.08 per diluted share, compared to $981 million in the first quarter of 2016.
Baker Hughes chief Martin Craighead said in May that his firm expects the U.S. rig count to “begin to stabilize” in the second half of 2016.
However, Craighead added that Baker Hughes does not expect “activity to meaningfully increase in 2016.”