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. “
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