Devon to lay off 300 workers
Devon Energy Corp. on Tuesday announced plans to lay off 300 employees as the company continues to remake itself in an era of relatively low oil and natural gas prices.
The cuts affect about 9 percent of the Oklahoma City-based oil and natural gas company. The layoffs will affect all parts of the company and will take place over the next few weeks, the company said.
“Our changing industry requires us to make some difficult decisions,
and this one is the most difficult,” CEO Dave Hager said in an internal memo to Devon employees on Tuesday. “The main feedback we heard from those affected in the 2016 workforce reduction was that they appreciated being treated with respect, transparency and dignity. I assure you that this will be no different. Through the good times and the difficult times, we will live the Devon values.”
The layoffs, along with other cost-reduction efforts, are expected to save the company $150 million to $200 million in general and administrative costs by 2020, the company said.
The reorganization is part of Devon's broader 2020 vision, which executives unveiled in February. The strategy calls for the company to focus on its core fields, reduce projects and streamline assets.
“Simply put, we have had too many people working on too many
things — projects and otherwise — that are ancillary to our core business,” Chief Operating Officer Tony Vaughn said in the internal memo. “In isolation, each of those projects adds value, but when taken as a whole, they are dilutive to our focus on the key valuecreation activities of the company.
Besides layoffs, Devon executives also have cut the number of active projects, and slashed spending on information technology hardware and software, travel, contractors and consultants, sponsorships and charitable contributions.
“The oil and gas industry is in a lowerfor-longer commodity price environment, which requires Devon to transform the way it operates,” spokesman John Porretto said in an email to The Oklahoman. “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.”