Pioneer Natural Resources Looks to Cut Costs With ‘generous' Buyout Offer

Pioneer Natural Resources is looking to eliminate potentially hundreds of jobs with what it describes as a "generous" voluntary buyout offer to employees.If not enough employees agree to leave, the Irving-based oil and gas exploration company said it will be forced to lay off additional workers by June. A report by a TV station in Midland quoted current and former employees as saying Pioneer wants to shed 300 jobs.Pioneer had previously prided itself in being able to ride out swings in the often-volatile oil business without ever having a layoff. It had 3,177 employees at the end of 2018, according to a regulatory filing.Spokesman Tadd Owens declined to respond to questions beyond the company's prepared statement, which emphasized its commitment to owning only Permian Basin assets. It did not specify terms of the buyout."This positions the company to improve capital efficiency and enhance shareholder value," the statement said. "But this strategy calls for a simplified organizational structure, which means difficult decisions must be made about the workforce necessary to support Permian-only operations."In a presentation to investors this week, Pioneer said it expects to save $100 million a year as a company with Permian-only assets. It also said it'll boost production by as much as 17%, even as it reduces capital spending by 11%."Achieving a scaled workforce commensurate with our ongoing operations will lead to lower costs in line with our peer group," the statement said. "Pioneer's future is strong ... ."  Continue reading...