Devon Energy Corp. on Tuesday confirmed it will reduce corporate-wide staff by about 9%, or about 300 people, as part of a commitment to streamline the business and improve returns.
The Oklahoma City-based independent said the losses would be felt across all of its onshore operations.
“The workforce reductions, which will impact all parts of the company, will occur in the weeks ahead,” spokesman John Porretto told NGI’s Shale Daily on Tuesday.
“The oil and gas industry is in a lower-for-longer commodity price environment, which requires Devon to transform the way it operates,” he said. “The company must continue to sharpen its focus on core operations, increase its operating and financial efficiencies and align its workforce with this heightened focus to be as competitive and successful as possible in this environment.
“As a necessary step in achieving that alignment, Devon is reducing its employee count by about 9%, or approximately 300 jobs.”
Devon also reduced its workforce following the oil price commodity crunch that began in late 2014.
The company, said Porretto, continually evaluates its “resource needs “to meet the changing structure of its business. The workforce reduction aligns the company’s organizational structure with the business activities that best support Devon’s strategy to optimize investment returns.”
The company is simplifying its asset portfolio to improve its bottom line, he said.
The staff reductions, “together with numerous other cost-reduction measures, will remove $150-200 million in general and administrative costs by 2020,” he noted.
CEO Dave Hager during the fourth quarter conference call in February said the company planned to shed more than $5 billion of its assets to become a leaner, more efficient operator. The asset sales have been ongoing for awhile, as Devon streamlines its portfolio.
The company is buying back about $1 billion of its stock and has raised its quarterly dividend by 33%.