Ovintiv has laid off 25% of its workforce this month as the oil and gas firm deals with plunging fuel demand and lower prices as a result of the Covid-19 crisis.
The company confirmed that it handed layoff notices to 25%, or around 650, of its 2,600 staff in Canada and the US, Bloomberg reported.
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Bloomberg earlier cited a company spokeswoman as saying that the job cuts would be equally spread across its offices in Calgary, Denver and The Woodlands, Texas.
The news agency quoted Ovintiv communications director Cindy Hassler as saying: “We feel like the industry and Ovintiv is transitioning to lower production growth levels. We just feel that’s the direction we’re headed.
“The new model we feel going forward will combine free cash generation, stronger balance sheet and modest growth. So more at maintenance activity levels.”
According to Reuters, Ovintiv’s shares have nearly halved in value so far this year, while oil prices in the US have fallen by about 38%.
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By GlobalDataEarlier this year, Encana rebranded itself as Ovintiv and shifted its headquarters from Canada to US.
In July last year, Encana’s wholly owned subsidiary Newfield Exploration Mid-Continent has signed a $165m agreement to sell its natural gas assets in Arkoma Basin, US.
The company acquired Newfield Exploration Company in an all-stock transaction worth C$7.7bn ($5.81bn) in February last year.
