© Supplied by Baker Hughes 
A total of 4,500 jobs are at risk within US service firm Baker Hughes following a penny-pinching pension overhaul.
The oilfield services giant has told employees that it can no longer afford to spend £34 million per year on its UK retirement savings plan and is therefore proposing to reduce pension contributions.
One concerned Aberdeen-based employee told Energy Voice that Baker Hughes has issued “advanced notice of redundancies to 4,500 people across the UK, if as employees we fail to agree to new pension terms”.
The worker said they will see a “25% reduction in pension contributions” under the proposed plans. The changes are expected to take effect from 1 January 2026.
In a document issued by Baker Hughes to those impacted, the firm wrote that dismissals would affect all employees who cannot reach an agreement on new pension terms with the firm.
© Supplied by Baker HughesA fire and rehire option was also detailed in the official company literature as employees who do not agree will be offered re-engagement under new terms following their termination with immediate effect.
The firm said that it hopes that the fire and rehire measure is not needed, but it provided details for legal reasons.
60 days on uncertainty for Baker Hughes workers
There will be a 60-day consultation period for the proposed changes with no job losses set to come into play until after conversations with representatives are held.
There is no union recognition agreement with Baker Hughes in place within the UK, this means that elected employees will represent the workforce in the collective consultation process.
There are some employees at the firm who are members of unions, however, those unions will not be involved in the consultation.
The 60-day notice period throughout the consultation is longer than usual, a union representative explained.
Vic Fraser, regional officer for Unite the Union, said: “I note the 60-day consultation period is not one common within UK statute, they are normally 20-99 employees, 30 days and over 100 employees, 45 days.”
© DCT MediaA Baker Hughes spokesperson said the forms seen by Energy Voice were “part of a broader communication package” to its thousands of UK employees and that the lower pension contributions would still place the firm “within the top 25% of employers in the UK”.
In a statement the firm said: “Baker Hughes regularly reviews its global benefit offerings to ensure that we remain an employer of choice, while also maintaining sustainable business practices.
“In the wake of a review that began in 2024, the company recently communicated an upcoming proposed change in pension plans which would align with the current offering to new hires in the UK from 1st August 2024. These plans would keep Baker Hughes within the top 25% of employers in the UK in terms of pension contributions.
“The HR1 form is statutorily required by the UK government. It was part of a broader communications package to our employees. This communications package provided additional context and background on this proposal.”
In January, the US giant reported positive results for 2024 as it revealed it had beaten analyst profit estimates with an 8% increase in revenue and a 36% jump in adjusted net income.
Baker Hughes achieved an adjusted profit of $0.70 per share in the fourth quarter, surpassing analyst expectations of $0.63.
The company’s industrial and energy technology (IET) segment experienced strong growth, with orders rising by 44% and revenue reaching $3.5 billion.
Baker Hughes attributed the surge to robust demand for compressors, turbines and other modular systems used in gas processing.
Baker Hughes boasts ‘significant’ UK footprint
However, at the recent Offshore Energies UK (OEUK) conference, Andy Barr, regional director of subsea and surface pressure systems for Europe and Caspian at Baker Hughes, argued that the windfall tax may serve to undermine any positive political support energy firms in the UK are set to receive.
Barr told attendees in Aberdeen: “Baker Hughes has been present in the UK since the 1970s, and for now we continue to maintain a sizable presence in the UK.
“Our 4,700 UK employees work at 30 sites or more nationwide, including here in Aberdeen, down the road at Montrose, in Newcastle, Bristol, and elsewhere.”
© Supplied by Michal WachucikHe claimed that Baker Hughes aims to “retain our world class workforce and expertise, here in the UK”.
“Regrettably, however, there are some examples of sites within Baker Hughes portfolio that we have closed in recent years,” Carr continued.
“In addition to a downsizing of our Aberdeen footprint, these include the closure of our chemicals manufacturing site and Kirby, Liverpool, and the transfer of production to Singapore.
“Despite this, our footprint in the UK remains significant and spans the breadth of the energy sector, current and future.”
