Marathon Oil Announces Job Cuts
Following a third quarter that resulted in a net loss, Marathon Oil has announced that it will be doing some job cuts that will affect as much as 200 employees.Advertisement
According to Fox 23, Marathon Oil says the 200 job cuts will be done via both voluntary and involuntary separations. It is not yet clear how many of the company’s employees will be affected in Oklahoma, where Marathon Oil owns 270,000 acres of land for drilling. As part of the company’s restructuring efforts, Marathon Oil will reportedly organize the company into two business lines: Conventional and Resource Plays. The company’s Oklahoma, Eagle Ford and Bakken assets will belong to the latter.
Earlier this month, Marathon Oil released its third quarter results and revealed it had suffered a net loss of $749 million, or an adjusted net loss of $138 million. Moreover, the company’s third quarter saw $611 million in non-cash charges resulting primarily for the losses and asset impairments caused by lower forecast commodity prices. Moreover, the company’s third quarter capital, investment and exploration program was also reportedly down by 7 percent to around $623 million.
According to Marathon Oil’s statement, the company is making updates to its organization structure in order to become “the lowest-cost, highest-margin North American resource play-focused independent in our peer group.” Total E&P production expense for the company has already gone down by 30 percent, compared to the same quarter during the previous year. Moreover, the company says its North America E&P production costs per boe has also been down by 27 percent, compared to the same quarter last year.
Marathon Oil reportedly hopes that the job cuts will be finished by the end of November.