The Classy Investors

  /  Stock   /  U.S. oil producer Hess cutting about 10% of workforce: sources

U.S. oil producer Hess cutting about 10% of workforce: sources

imageStock Markets4 hours ago (Aug 14, 2020 05:25PM ET)

(C) Reuters. Pumpjacks taken out of production temporarily stand idle at a Hess site while new wells are fracked near Williston

HOUSTON (Reuters) – U.S. oil producer Hess Corp (N:HES) is cutting about 10% of its workforce and streamlining operations after reporting its fifth quarterly loss in a row, according to people familiar with the matter.

Energy companies have slashed spending and production as petroleum prices have dropped 31% this year. A sharp decline in fuel demand due to the COVID-19 pandemic has oil companies girding for a prolonged period of weak prices.

Hess, which had about 1,770 employees as of Dec. 31, dismissed about 165 full-time workers this week and terminated an undisclosed number of contract employees, according to people familiar with the matter.

A spokesperson declined immediate comment.

It has pared spending on new projects this year by more than $1 billion from its initial plan. A $320 million second quarter loss pushed Hess’s first half loss to $502 million.

Shares rose 2% to $53.78 on Friday but are off 21% year to date.

U.S. oil producer Hess cutting about 10% of workforce: sources

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.