UK-based BP (NYSE: BP), which has its US headquarters in Houston, announced Monday that it was freezing the wages of its 80,000 employees. The cutbacks come as oil prices hit a five-year low.
The price of crude oil has fallen more than 50 percent since June, setting off a string of companies adjusting their 2015 exploration budgets and laying off thousands of employees.
“BP has today informed staff that we intend to freeze base pay across the company (with a few exceptions),” the company said in a statement. “Together with the work we are doing to simplify and increase efficiency throughout BP, we see this as a prudent response to the currently challenging market environment in which BP operates.”
Prior to the decline of oil prices, BP had started reorganizing its operations in an effort to meet financial and legal obligations from the 2010 Deepwater Horizon rig explosion. The blast that spilled oil across the Gulf of Mexico killing 11 workers has resulted in the company selling more than $40 billion in assets.
Earlier this month BP stated it would cut 200 jobs related to North Sea production, as well as another 100 contractors.
Although the company is adjusting to current market conditions, BP remains an oil industry leader with roughly one in four employees working in the US.