Corporate corner: Byco announces restructuring

KARACHI:

Crude oil prices have tumbled over 70% since peaking at over $100 a barrel in 2014, squeezing the revenues and capital expenditures of the industry, due to which companies have reacted, globally, by cost cuts wherever possible, be in overheads, operating costs, research and development or cash outlays like capital expenditures, to conserve cash flows for future dividend outflows.

Global oil layoffs exceed 100,000 and leading international energy companies have announced spending cuts of more than $40 billion and assured investors that they were ready to tighten further if the market did not recover significantly. In the light of the current market environment, Byco has decided to reduce internal costs in multiple operating units  as well as at the head office, which includes rightsizing.

Published in The Express Tribune, February 27^th,  2016.

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