Anadarko Petroleum has cut some1000 jobs from its workforce, as the company braces itself for its proposed budget cut of nearly 50%, to stay afloat during the downturn hitting the entire oil and gas industry.
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Anadarko CEO Al Walker. Image from Anadarko Facebook. |
"We have been carefully evaluating what our staffing levels should be, given the down cycle and what it should look like in a recovery," Stephanie Moreland, Anadarko senior public affairs representative told OE.
"The staff reductions are necessary as we work to navigate a difficult market environment, and adjust our workforce given our lower capital program and reduced activity levels. These steps will help ensure the organization is right sized and appropriately staffed for the current environment and well positioned for the future," Moreland said.
The corporate-wide job cuts, which represent 17% of Anadarko’s workforce of about 5800, are said spread across most organizations, as well as across Anadarko's operating areas, corporate headquarters and regional offices.
Earlier this month, Anadarko announced its plans to reduce its capital investments some $2.8 billion, about a half lower compared to 2015, and 70% lower than 2014. In addition, Anadarko is set to monetize up to US$3 billion of assets, and focus on the company’s offshore operations in the Gulf of Mexico, and offshore Africa.
The Woodlands, Texas-based company posted a full year 2015 net loss of about $7 billion, and a Q4 2015 net loss of $1.25 billion.
“We did not expect oil prices to recover in 2015 and believed it could take well into 2016 before markets would stabilize on a sustained basis. As a result, we reduced our year-over-year spending in 2015 by more than $3 billion, down nearly 40% from the previous year, with the largest portion of this reduction coming from our short-cycle opportunities,” Al Walker, Anadarko chairman, president and CEO said last month.
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