Anadarko is reducing its workforce by 17% – or about 1,000 jobs – company spokesman John Christiansen confirmed to Oilpro by phone Thursday afternoon. He said the layoffs will be spread across the entire organization and its operating areas, including the corporate offices in Houston, Texas, and the regional headquarters in Denver, Colorado. “It has been a sad day for us here,” he said.
In February, CEO Al Walker said in Anadarko’s year-end results presentation that it is cutting its 2016 Capex in half from 2015- to $2.8 billion- on expected lower activity levels. Christiansen told us that it was around that time that Anadarko began evaluating the staffing reductions needed to effectively navigate the down cycle while also well-positioning itself for the future.
CEO Al Walker said in the 4Q15 earning’s release, “We did not expect oil prices to recover in 2015 and believed it could take well into 2016 before markets would stabilize on a sustained basis…Value enhancement drove our capital-allocation philosophy.”
The bulk of the 2016 Capex reduction will come from “significantly reduced US onshore investment,” Anadarko’s management team said in the company’s 4Q15 earnings call on February 2.
Walker said during the call that “greater market dislocation appears likely [in 2016], and the need to again materially lower our capital spending, while continuing to pursue value creation and preservation, is our best course of action.”
Source: Anadarko’s 4Q15 conference call presentation
“We believe the accomplishments achieved in 2015, coupled with the steps we are taking in 2016 to materially reduce our capital spending, leverage our competitive advantages and protect our balance sheet, will serve our shareholders well. These actions should enable us to successfully manage through the current market volatility and position Anadarko for future success,” he added.