Low natural gas prices force oil and gas producer to cut costs by 20%.
February 21, 2013
by The Canadian Press
CALGARY—Talisman Energy Inc. has laid off 90 employees at its Calgary office as low North American natural gas prices force it to cut spending on less profitable areas.
The Calgary-based international oil and gas producer says the job cuts are part of an effort to reorganize and streamline its Canadian operations. It still has 1,500 employees in Canada, with 1,200 of those in Calgary.
The company says persistently weak natural gas prices have directed focus away from dry gas areas and more on ones rich in liquids, which fetch a price more akin to oil.
The company has said it aims to reduce its general and administrative expenses, which are currently at $1.3 billion, by 20% annually.
The layoffs include professionals such as engineers and geologists in Talisman’s Canadian division, as well as administrative staff that supported that work, Buckland said.
The company has an attrition rate of more than 10%, so some vacant positions won’t be filled.
©The Canadian Press