Penn West Cuts 25 Percent of Jobs, Expects C$25 Million ExpenseRebecca Penty
Penn West Petroleum Ltd. Chief Executive Officer David Roberts, who took over the Canadian oil producer in June, has cut 550 jobs, or 25 percent of the company’s workforce, this year.
Penn West, based in Calgary, expects to record a C$25 million ($23.8 million) expense related to the job cuts in the third quarter of 2013, the company said in a statement today.
“While I now believe we are staffed at an appropriate level to efficiently move the company forward, our processes and actions must continue to drive cost improvements to our bottom line so our shareholders can measure the progress we are making,” Roberts said in the statement.
When Penn West appointed Roberts to replace Murray Nunns in June, it said the company would cut costs and review alternatives.
Penn West made the announcement after the close of regular trading on North American markets. The shares rose 1.2 percent to C$11.92 at the close in Toronto. Penn West has gained 10.4 percent this year.