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Companies continue cuts in the oilpatch amid low oil prices in wake of pandemic

Last Updated Apr 20, 2020 at 8:36 am MST

An oil refinery is silhouetted against the setting sun April 24, 2008 in El Dorado, Kan. The cuts in the oil patch are continuing as companies adjust to lower oil prices in the wake of the pandemic. MANDATORY CREDITTHE CANADIAN PRESS/AP, Charlie Riedel

CALGARY — The cuts in the oil patch are continuing as companies adjust to lower oil prices in the wake of the pandemic.

Cathedral Energy Services Ltd. and McCoy Global Inc. both announced job cuts, reductions to executive pay and lower capital spending plans.

Oil prices have plunged due to the drop in demand due the outbreak of COVID-19, even with an agreement by OPEC and other producers to cut output starting in May.

Cathedral says it has cut its office and shop staff by 22 per cent, while the remaining Canadian non-field staff has moved to a four-day work week with a corresponding 20 per cent reduction in salary.

The company also cut its CEO and executive vice-president salaries by 25 per cent, while board retainer fees have been reduced by the same amount.

McCoy announced an unspecified reduction in its headcount as well as salary and wage cuts across all levels of the organization including board and president and CEO cuts of 25 per cent and 20 per cent for other executives.

This report by The Canadian Press was first published April 20, 2020.

Companies in this story: (TSX:CET, TSX:MCB)

The Canadian Press