One third of global energy firms plan to lay off staff due to Covid-19 pandemic, says Mercer – The National

One third of global energy firms plan to lay off staff due to Covid-19 pandemic, says Mercer – The National

One third of global energy firms plan to lay off staff due to Covid-19 pandemic, says Mercer. Some 71 per cent of 228 energy companies surveyed said they expect to implement a headcount freeze.. "[With the situation], what we have seen is that companies in that sector have cut around 30 per_cent of executive pay and 10 to 15 per_cent for more junior staff," he added.. Around 48 per cent of firms have implemented or are planning to freeze pay, while 27 per cent are likely to reduce base pay, Mercer found.. Oil and gas services companies have taken a hit to earnings as producers cap spending.. In the Middle East, Saudi Aramco, the biggest oil exporting company in the world, reported a 25 per cent slide in first quarter profit but its dividend policy was unchanged.. The headcount freeze implemented by 71 per cent of companies polled globally is expected to last a long time, he said.. Consolidation among energy services companies could define the sector after the pandemic, he said.. "A lot of smaller EPC and oil and gas services companies in the region and the private services companies will definitely suffer..