WPX Energy (NYSE:WPX) is trimming its company-wide workforce by about 8% and consolidating most of its regional office staff in Denver, Colo., together with personnel at the company’s Tulsa, Okla., headquarters, the company said March 2.
The move comes despite WPX's 50% reduction in capex from 2014 levels, Raymond James Equity Research said.
Eighty-three employees are being notified that their positions are affected by the workforce reduction, including 44 in Tulsa; 25 in Denver; 11 in Parachute, Colo.; two in New Mexico; and one in North Dakota. The company will offer affected employees severance payments and outplacement services to help with the transition.
About 120 people will also be affected by the consolidation of most of WPX’s Denver workforce to company headquarters in Tulsa. Affected employees are receiving offers to relocate to Tulsa.
Following the reductions, WPX’s staff level supporting its primary operations is about 900. The company also has employees in Wyoming and Pennsylvania who support assets that are targeted for divestiture. WPX plans to maintain a staff of fewer than 15 people in Denver to support its legal, environmental compliance, safety and government affairs functions. Their jobs depend upon maintaining strong local relationships and interacting frequently with judicial, governmental or regulatory officials.
To manage costs, WPX offered a voluntary early exit program in mid-2014. About 100 people accepted the early exit offer. Additionally, WPX reduced its general and administrative expenses by 11% in fourth-quarter 2014 compared to the same period in 2013.
WPX drills for oil and natural gas in North Dakota, New Mexico and Colorado. The company operates more than 5,800 wells in these areas.
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