Halliburton (NYSE:HAL) furloughs will have the company changing up schedules for its employees.
- The Halliburton furloughs will begin next Monday.
- They will last for 60 days as the company deals with falling oil prices.
- To combat these falls, 3.500 employees at Halliburton’s North Belt facility in Houston will see changes to their schedules.
- That includes only working every other week for the company.
- This means the Halliburton furloughs won’t allow employees to work during their off weeks.
- These employees won’t receive any kind of payment on their off weeks.
- The company also notes that this will allow it to maintain benefits for its employees during this time.
- That includes health insurance.
- These falling oil prices are coming after an alliance was formed between The Organization of the Petroleum Exporting Countries and Russia.
- This agreement came about earlier this month.
- The coronavirus from China is also having a negative effect on the energy sector, which is further dragging down oil prices.
- As a result, crude oil prices have fallen 45% during March, which is dropping it to its lowest levels since 2002.
- While Halliburton furloughs are the current answer to this problem, things could get worse if oil prices don’t recover.
- If the issues persist, its possible Halliburton could start laying off employees in an effort to cut costs.
HAL stock was down 29.32% as of Wednesday afternoon and is down 75.12% year-to-date.