Cost-cutting unveiled last week by Oklahoma City-based SandRidge Energy hit home on Monday when the energy company announced the layoff of at least 80 employees.
“As part of the company’s previously announced commitment to reduce go-forward costs, it was necessary to restructure the organization to best align with the revised strategic plan,” the company said in a statement Monday afternoon. “Workforce reductions are extremely difficult. At SandRidge we are committed to the honor and dignity of our employees and want to acknowledge the significant contributions of those departing.”
The layoffs reduced the company’s Oklahoma City workforce from 269 down to 189. Prior to the announced layoffs, the company had 476 full-time employees in Oklahoma City and at other sites. So the company-wide workforce should be just under 400.
The cut in the workforce also occurred as some royalty owners complained about late payments. An attempt was made to reach SandRidge for an explanation but the company did not respond.
At the time of last week’s quarterly earnings, Bill Griffin, the new CEO at the company said he was working on development of a new company strategy. So the new strategy involved letting dozens of workers go as part of cutting general and administrative expenses by one third. Griffin said he wanted the expenses to be reduced to about $39 million a year and explained that layoffs would be coming.
“The change will impact hardworking, dedicated employees. These decisions will not be taken lightly,” he commented at the time.