Canada’s Penn West to cut workforce 35 percent, slash spending

http://fuelfix.com/blog/2015/09/01/canadas-penn-west-to-cut-workforce-35-percent-slash-spending/#35109101=0

Canadian oil and gas producer Penn West Petroleum said Tuesday it is planning by the end of the year to cut 400 employees and contractors, around 35 percent of its workforce, suspend its dividend and cut costs in an effort to support its balance sheet amid low oil prices.
The layoffs, which will largely affect the company’s main office in Calgary, will save Penn West about $45 million annually, and most of the cuts are effective immediately. This will add to the 176,000 oil workers laid off around the globe in the past several months, according to energy recruiter Swift Worldwide Resources.
“We have made a number of exceptionally difficult decisions in order to remain competitive in the current commodity price environment,” Penn West President and CEO Dave Roberts said in a written statement. “We view the cost reductions as sustainable and we will remain well positioned for the potential expansion of development activities and capital programs in the future.”