Tullow To Layoff 25% Workers

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The recent challenges facing upstream oil firm, Tullow Oil Plc could lead to job cuts, reports suggest.

According to the reports, about 25% of the total workforce in Ghana could lose their jobs this year.

35% of top management staff are also expected to be affected.

The move, sources say is part of a restructuring policy, due to the challenges it faced in 2019.

It plans to cut a third of its staff globally to slash its administration costs by a fifth, or around US$20 million, a source with direct knowledge of the matter told Nasdaq, after weak output in Ghana, delays in East Africa and lower-than-hoped-for oil quality in Guyana.

After a string of production downgrades, Tullow expects its production to shrink to 75,000 barrels per day this year and to 70,000 bpd from 2021.

Tullow’s value dropped by 30% in 2019, triggering the probability of reducing its workforce in order to stay in business and remain competitive. This follows a decline in its shares by 60% in December 2019, due to announcement by its CEO, Paul McDade and Exploration Director, Angus McCoss that they had quit the firm.

More than £1.05 billion was wiped off Tullow’s market value, leaving the company reeling, valued at £801.7m.

The company is yet to announce a new CEO after the resignation of Paul McDade.

In Ghana, Tullow Oil operates the country’s Jubilee and TEN fields.

It is presently trading at GHS11.94 per share on the Ghana Stock Exchange.

Source: classfmonline.com

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