Whiting Petroleum Corp., one of Denver's biggest oil and gas companies by revenue, announced Wednesday its has cut 33% of its workforce, eliminating 254 positions across the company, in the face of disappointing financial results.
The cuts include 94 executive and corporate positions, most of whom work at the company's downtown Denver offices.
The company also let go field-operations workers in northeast Colorado.
Bloomberg reports that Whiting has cut its workforce considerably over the last few years. In 2015 it employed 1,282 people, the news service said.
Whiting is Denver's seventh-largest oil and gas company based on 2017 revenue, according to the Denver Business Journal's Book of Lists.
“We aim to be as efficient as possible, and that is why we made the difficult decision to reduce our workforce in order to realize significant annualized cost savings,” said company President, Chairman and CEO Brad Holly in a statement announcing the cutbacks.
Whiting said it expects to save $50 million a year through the cuts, although it also expects a one-time charge of $8 million over the next few months to cover costs related to the cuts.
Noting that "the oil and gas industry landscape continues to evolve," Holly said that the "decision to reduce headcount is always a difficult one as it impacts talented colleagues and friends, but it is a necessary step in our company’s transformation. I want to express my sincere appreciation for the employees affected by today's announcement and their many contributions to Whiting."
The company did not cite ongoing changes in Colorado's oil and gas regulatory structure as a factor in its cutbacks.
Also Wednesday, Whiting posted a second-quarter loss of $5.7 million on revenue of $426.3 million, versus a profit of $2.1 million on revenue of $526.4 million in the same period a year ago.
It reported a modest drop in crude-oil production and a decline in oil and gas prices as factors in its financial results.
Whiting operates primarily in North Dakota, Montana and northeast Colorado.