Murphy Oil is planning to make cuts to its worldwide workforce in direct response to the negative impacts of low commodity prices.
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Image from Murphy Oil. |
“Over the course of the past year and a half, Murphy has taken actions to lower costs in direct response to the negative impacts of low commodity prices,” Kelly Whitley, Murphy Oil VP of investor relations and communications told OE. “A reduction in force is an action that we have undertaken. Head count has been lowered across all functions in every location to match our lower capital spend.”
Murphy conducts operations in the US, Canada, Malaysia, Vietnam, Burnei, Namibia, and Australia.
Murphy Oil said that at this time, the company is not prepared to quantify the number of job cuts.
In the company’s Q4 2015 report, Murphy Oil announced that its management had taken a proactive approach toward improving Murphy's efficiency and structure in direct response to the low commodity price environment.
“Over the course of 2015, the company announced and implemented key organizational changes including lowering staffing levels by over 20% and decreasing G&A expense by approximately 16% from 2014 levels, or US$57.3 million. Full year benefits from these actions will be realized in 2016,” Murphy Oil said.
In its Q3 report, the company had anticipated to save 18% or $64 million from overhead cost reductions, when compared to 2014. According to the report, Murphy expected its year-end 2015 staffing levels to be reduced by approximately 23% from a year earlier.
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