OKLAHOMA CITY – One of the largest energy companies in Oklahoma announced its plan to lay off staff due to declining oil prices.
Devon Energy announced its plans to let go 20 percent of its staff, or 700 members, in its first quarter of 2016.
Tuesday the company sent a statement regarding the layoffs:
"Devon has begun its previously announced employee reductions and expects to complete the process at its Oklahoma City headquarters by midday Thursday. At field-level offices, the company expects to complete notifications Feb. 22. Devon has taken these and other cost-reduction actions primarily as a result of the current commodity price environment. The company must reduce expenses across the entire organization to maintain its financial flexibility and competitiveness. Devon will reduce its headcount by approximately 20 percent in the first quarter, or about 1,000 positions. Approximately 700 employees in Oklahoma City are directly impacted.There will be up to an additional 600 employees impacted by the sale of non-core upstream assets. The majority of the divestiture impact will be at the field level. In most cases, we expect these individuals will go to work for the acquiring companies."
According to NBC station KFOR in Oklahoma City,Devon reported its core earnings for the fourth quarter of 2015 showing that it suffered a net loss of $4.5 billion due to non-cash, asset-impairment charges.
The company’s “workforce reduction program” is expected to save the company $400 million to $500 million on an annual basis.
In January, a spokesperson for the company sent a statement:
“To maintain our financial flexibility while oil and natural gas prices remain weak, Devon continues to thoroughly examine all options to lower the company’s cost structure. After careful consideration, it’s clear that layoffs will be a necessary part of the company’s near-term cost-management efforts. The company has not determined the extent of the reduction but expects the majority of layoffs to occur by the end of the first quarter.”
According to Devon officials, the company employs roughly 2,500 people in Oklahoma City.
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