Job cuts are coming for two shale oil producers Pioneer Natural Resources Co. of Dallas and Parsley Energy Inc. of Austin.
Both Permian Basin operators are planning to start layoffs in the coming days after each reported huge second quarter losses reported Reuters this week.
The cost cuts are the latest by oil and gas producers as oil demand and prices have plunged due to the COVID-19 pandemic. More than 100,000 jobs in the U.S. industry had been axed this year through mid-June, consultancy Rystad Energy estimates.
Parsley is laying off about 10% of its 496 employees, a person familiar with the matter told Reuters. It posted a $356 million second-quarter loss and suspended production guidance. A spokesperson declined to confirm the number of job cuts.
Pioneer Natural, which had cut drilling activity and lowered a production growth target, said its layoffs are part of a restructuring that will conclude next quarter. A spokesperson declined to say how many workers would be affected.
It has about 2,300 employees, and had dismissed about 50 employees in its well services business in June. Pioneer reported a $439 million second-quarter loss earlier this month on lower energy prices and derivative losses.
Source: Reuters