Energy group Santos warned employees of “significant” redundancies in the wake of cuts to capital expenditure and falling oil prices.
The Australian Workers Union said chief executive David Knox emailed staff yesterday advising them of the cuts to the company’s work force, according to the ABC.
“As part of this process, we are now focusing on pursuing all efficiency and productivity options and setting how the business will operate in this new, low oil price environment, including reducing our contractor workforce and implementing redundancies,” Knox said.
“The level of redundancies will be determined through this productivity and efficiency process.
“Despite the current volatility in the oil price, Santos remains committed to the development of the Cooper Basin, with a view to unlocking its full potential.”
In early December, the gas and oil producer announced it was slashing 2015 capital expenditure plans by $700 million to $2 billion following the substantial fall in oil prices.
Later the same month, Santos organised a three-year, $1 billion bilateral bank loan facility with ANZ.
Chief financial officer Andrew Seaton said the facility would strengthen Santos’s conservative liquidity profile and “provide a buffer over and above funding needs”.
Santos was up 1.52% at market close yesterday to $8.00.