Photo: Houston Chronicle

Schlumberger executives are taking pay cuts while the oil-field services company lays off and furloughs workers in the U.S. and elsewhere in North America.

Citing an "extraordinary business environment" as the coronavirus pandemic and record-low oil prices ravage the industry, Schlumberger said Tuesday that executives and senior managers are voluntarily taking a 20 percent pay cut beginning Wednesday.

The company also is accelerating the restructuring of its North America land-based operations, which includes a combination of layoffs and furloughs by business line and location. The changes are expected to take place over a couple of months.

In other markets around the world, Schlumberger has adopted modified work schedules that will in effect reduce payroll.

Service Sector: Layoffs, pay cuts loom as Schlumberger cuts budget

Oil companies around the world are making cuts as they try to weather a simultaneous global supply glut and evaporation of demand caused by the pandemic. West Texas Intermediate crude oil is trading around $20 per barrel, a price not seen since January 2002.

Schlumberger, which lost $10.1 billion last year, was already struggling with oil at $50.

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