MAY 29, 2019 UPDATE — COMPANY ANNOUNCES ADDITIONAL CUTS TO WORKFORCE
In addition to the 300 employees laid off in April, Pioneer Natural Resources announced that another 230 employees will be laid off at the company’s Irving Texas headquarters and at its Permian Basin offices.
According to a company spokesperson, "Decisions like these are never easy. In this case they were necessary to both align our cost structure with our business strategy and to create value for our shareholders over the long term.”
Translated from corporate-speak, we would rather cut our personnel costs and use the money to make our investors on Wall Street happy so they increase our valuation.
The running total is approximately 877 employees laid off in 2019.
Irving, Texas-based Pioneer Natural Resources, a petroleum exploration company with significant holdings in the Permian Basin, is seeking to immediately reduce costs by a reduction in headcount. The company has announced a voluntary buyout offer, followed by forced layoffs to eliminate at least 300 employees.
A company spokesman noted …
“Pioneer committed to a one-basin strategy in 2018 following a decade-long divestment of the majority of its non-Permian assets. This positions the company to improve capital efficiency and enhance shareholder value. But this strategy calls for a simplified organizational structure, which means difficult decisions must be made about the workforce necessary to support Permian-only operations.
Achieving a scaled workforce commensurate with our ongoing operations will lead to lower costs in line with our peer group, and it will assure Pioneer’s position as a leading independent in the Permian Basin.
A generous voluntary separation package has been offered to a group of employees to consider. Additionally, the company expects a number of involuntary separations will be necessary. This process will conclude by June so that our workforce can be focused for the rest of 2019 and beyond.
Pioneer’s future is strong, and these actions solidify our commitment to creating value for our shareholders and to the Permian Basin.”
As with all companies operating in the energy sector, wide swings in supply and demand are not uncommon, nor are changes in governmental policies affecting the sector. “
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?