Meg Energy Cuts 30 Percent of Workforce Over Past Year in Slumpby
Oil company slowing growth, reducing costs with low prices
Both employees and contractors affected by job reductions
Canadian oil-sands developer Meg Energy Corp. has eliminated 30 percent of its workforce over the past year as it slows production growth and cuts costs to weather the crude market downturn.
The producer is focusing on expanding existing operations and needs fewer workers, Bill McCaffrey, the company’s chairman and chief executive officer, said Wednesday on a conference call to discuss third-quarter earnings results.
Energy companies are delaying or scrapping projects and negotiating better prices from service providers as they lower spending to withstand an oil slump that has dragged on for 16 months. Meg said Wednesday that it reduced its capital spending for 2015 to C$280 million ($213 million), down 8 percent from the previous estimate, in announcing a C$428 million loss for the third quarter.
Meg isn’t disclosing the specific number of workers eliminated over the past year, Brad Bellows, a company spokesman, said in an e-mail. The producer had 685 full-time and 17 part-time employees at the end of 2014, according to a regulatory filing.