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Precision Drilling moves to cut costs and capital spending plan in response to COVID-19

Trainees Dan Brook and Bradley Williams are directed by instructor Clint Dyck while training to lay down drill pipe on a rig floor, at Precision Drilling in Nisku, Alta., on January 20, 2016. THE CANADIAN PRESS/Jason Franson

Precision Drilling Corp. says it is reducing staff, cutting salaries and lowering its capital spending plan in response to the COVID-19 pandemic and current market conditions.

The company did not immediately say how many jobs it was cutting as part of the plan.

The cuts come as Precision lowers its 2020 capital spending plan to $48 million, compared with earlier expectations for $95 million, and warns that further changes may be considered as the year progresses.

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The company also expects to reduce its fixed costs by over 30 per cent on an annualized basis.

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The oilfield services company is reducing its chief executive salary by 20 per cent, while other executive officer salaries are being cut by 10 per cent. Board of director compensation is being reduced by 20 per cent.

It is also implementing staff salary reductions and eliminating all non-essential travel, entertaining and other discretionary spending.

Click to play video: 'More Canadians losing jobs due to pandemic'
More Canadians losing jobs due to pandemic

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