The crashing price of oil may be good for Americans on the road, but in some cases, it is bad for their jobs. As the price of oil collapses, jobs in Oklahoma City are now being lost, as Devon Energy Corp. has announced it is shedding up to 700 jobs.
According to NewsOK, the company released a statement saying that the initial layoffs will be completed this week and that cuts in the company’s field office will be completed next week.
“Devon has taken these and other cost-reduction actions primarily as a result of the current commodity price environment,” the company said in a statement. “The company must reduce expenses across the entire organization to maintain its financial flexibility and competitiveness.”
Devon implemented the moves to repair its balance sheet after its fourth-quarter loss and a 52 percent drop in revenue. The company has been trying to cut costs as the price of oil falls.
“Devon’s top priority in 2016 is to protect the balance sheet,” Chief Executive Dave Hager said, as reported by MarketWatch. “We are tailoring activity to current market conditions and are prepared to adjust capital plans throughout the year.”
The oil and gas industry in Oklahoma shed more than 12,000 jobs last year as the price of oil continued its decline.
Hager said the company would use its savings to reduce its debt. The company also announced a 75 percent cut to its quarterly dividend, which now stands at six cents a share, according to MarketWatch.
The company’s fourth quarter report from last year found Devon with a core earning of $319 million. Unfortunately, Devon was also hit with a net loss of $4.5 billion during that time.
The company is reducing its workforce of 2,500 by 20 percent.
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