As I know you are certainly aware, these continue to be tough times for our industry. Oil prices are under pressure, rig counts continue to decline and customer spending has been significantly curtailed for 2016. As a result, we must continue to manage through this extended industry down-cycle by implementing additional cost reduction measures to protect the interests of all stakeholders.
To this end, we will unfortunately suspend implementation of the 2016 focal point salary increases. We will continue to monitor business conditions but cannot provide any more clarity at this time regarding when increases will be implemented.
I understand that foregoing the annual focal point review is a contribution that every employee will be making to the overall competitiveness of the Company. We are all in this together, and, as a reminder, pay reductions made to their base salary effective April 1, 2015 for the members of the Executive Committee as well as all other members of executive management are still in effect.
Please understand that this decision was not taken lightly, and was the result of a thorough review and consideration of all our options. It simply is not business-as-usual — we must make trade-offs in this time of uncertainty to minimize further personnel reductions and position the Company for success in this market.
I fully recognize and appreciate the challenges that this brings. However, in our long history, Halliburton employees have always met market challenges with determination, creativity and dedication. I appreciate your support and ongoing commitment.