Devon Business Practices

[onemoreokie]

Devon Energy hires Jefferies to sell $2-3B in assets

[ereid]

Any updates on the layoffs at Devon? I have heard HR and IT today? ...

[chuck5815]

I've heard that today is the day. Buckle your seat belts, folks.

[_Cramer_]

Yes, I have a friend in a field office. They're all nervously awaiting the budget announcement today.

Buckle up!

[Pete]

Employees telling me an official email went out today saying tomorrow will be layoff day for supervisors and above; everyone else will be Thursday.

Good luck to everyone at Devon. I've been in this position a few times and it really sucks.

[Tundra]

Employees telling me an official email went out today saying tomorrow will be layoff day for supervisors and above; everyone else will be Thursday.

Good luck to everyone at Devon. I've been in this position a few times and it really sucks.

News OK confirmed this as well....

Oklahomans are resilient, go out and do something bigger and better.

[dankrutka]

I honestly can't imagine this type of job instability -- knowing you could be axed tomorrow through no fault of your own. Good luck to everyone.

[gopokes88]

NewsOk saying it will be 700 employees

[Tundra]

OKLAHOMA CITY – Following the decline of oil prices across the globe, many energy companies in the Sooner State are struggling.

Devon Energy just released its core earnings for the fourth quarter of 2015.

The report say the company received core earnings of $319 million for the fourth quarter, but it also suffered a net loss of $4.5 billion during that same time period because of non-cash, asset-impairment charges.

The report also claims that Devon’s “workforce reduction program” will cut Devon’s number of employees by 20 percent in the first quarter of 2016.

The personnel cuts are expected to save the company $400 million to $500 million on an annual basis.

The announcement regarding layoffs was not unexpected.

In January, Devon officials said layoffs would be necessary for the company.

“To maintain our financial flexibility while oil and natural gas prices remain weak, Devon continues to thoroughly examine all options to lower the company’s cost structure. After careful consideration, it’s clear that layoffs will be a necessary part of the company’s near-term cost-management efforts. The company has not determined the extent of the reduction but expects the majority of layoffs to occur by the end of the first quarter,” a statement from John Porretto, the manager of media relations for Devon Energy, read.

According to Devon officials, the company employs roughly 2,500 people in Oklahoma City.



500 million in annual savings and they are only cutting 700 jobs? There you have it folks, what kinda of stupid money were these people making??? Holy Crap...

[Pete]

A 20% reduction was about the best that could be hoped for.

[PhiAlpha]

A 20% reduction was about the best that could be hoped for.

Given what I've been hearing from high level people there up until now, if it stops at 20% that is a win for everyone (except for those who are laid off).

Good luck to everyone at Devon and best of luck to anyone affected over the next few days.

[bchris02]

I honestly can't imagine this type of job instability -- knowing you could be axed tomorrow through no fault of your own. Good luck to everyone.

I have been through it in 2008. It's not fun, especially as you can sense layoffs getting closer. The day I was finally laid off it was actually a relief after the month-long build up.

[OkiePoke]

OKLAHOMA CITY – Following the decline of oil prices across the globe, many energy companies in the Sooner State are struggling.

Devon Energy just released its core earnings for the fourth quarter of 2015.

The report say the company received core earnings of $319 million for the fourth quarter, but it also suffered a net loss of $4.5 billion during that same time period because of non-cash, asset-impairment charges.

The report also claims that Devon’s “workforce reduction program” will cut Devon’s number of employees by 20 percent in the first quarter of 2016.

The personnel cuts are expected to save the company $400 million to $500 million on an annual basis.

The announcement regarding layoffs was not unexpected.

In January, Devon officials said layoffs would be necessary for the company.

“To maintain our financial flexibility while oil and natural gas prices remain weak, Devon continues to thoroughly examine all options to lower the company’s cost structure. After careful consideration, it’s clear that layoffs will be a necessary part of the company’s near-term cost-management efforts. The company has not determined the extent of the reduction but expects the majority of layoffs to occur by the end of the first quarter,” a statement from John Porretto, the manager of media relations for Devon Energy, read.

According to Devon officials, the company employs roughly 2,500 people in Oklahoma City.



500 million in annual savings and they are only cutting 700 jobs? There you have it folks, what kinda of stupid money were these people making??? Holy Crap...

It doesn't sound like the 700 is including the employees in the asset sale. Which will add to the savings, but decrease the employees.

[Tundra]

It doesn't sound like the 700 is including the employees in the asset sale. Which will add to the savings, but decrease the employees.

Well that would make more sense

[adaniel]

I honestly can't imagine this type of job instability -- knowing you could be axed tomorrow through no fault of your own. Good luck to everyone.

TBH...I am making plans to get out of the industry. I graduated and got a job during the 08/09 crisis and managed to hold on during the 2010/11 natgas crash, but this is too much. I am probably working harder now than I ever have in my life, and it really means nothing because your job is dependent upon a globally traded commodity. I cannot speak for Devon, but our company is one of the leanest in the business and even we are starting to have issues. Morale here is in the toilet.

Major props to the old school guys who have managed to ride the ups and downs over the past few decades. Devon and others will come back. But oil and gas is not for the weak, and I am just not sure I have the stomach for it anymore.

Good luck to everyone. I know several people who have survived layoffs and thrived later on, keep your head up.

[Just the facts]

500 million in annual savings and they are only cutting 700 jobs? There you have it folks, what kinda of stupid money were these people making??? Holy Crap...

An employee's paycheck is just a portion of what it costs to support an employee. Software licenses alone are a huge chunk of change. Health insurance, subsidized lunches, electricity, water, etc.... it all adds up.

[C_M_25]

The other thing you have to remember is that salaries are disproportionally distributed. In other words, you have a few people making A LOT of money, and a lot of people making the average amount (which is still probably higher than equivalent experience levels in other industries). Contrary to popular belief, most people in the industry are regular folks just trying to get by.

[Rivalyn]

It doesn't sound like the 700 is including the employees in the asset sale. Which will add to the savings, but decrease the employees.

According to the article I read, looks like they anticipate 600 more as part of/after the asset sale.

[soonerguru]

A 20% reduction was about the best that could be hoped for.

If it's 700 people out of 2,500 employees, that is more than a quarter. Pretty big hit.

[Thomas Vu]

I have been through it in 2008. It's not fun, especially as you can sense layoffs getting closer. The day I was finally laid off it was actually a relief after the month-long build up.

I went through it tail end of last year. I can confirm the feeling. Up til the moment it happened, my boss and I were often trying to break tension by discussing who would get canned first. Turns out, I was right.

[catch22]

I have been through it in 2008. It's not fun, especially as you can sense layoffs getting closer. The day I was finally laid off it was actually a relief after the month-long build up.

Absolutely correct. When United finally announced OKC was shutting down, it was obviously disappointing news, but it was such a relief to finally be able to look to the future. The tension, anxiety, and worry for the 6 months leading up to the announcement was absolute torture. I wish they had just kept their plans private and just told us on the day they decided. It sucks getting laid off, and I think it sucks even more knowing "it might happen but we aren't sure yet."

[Jeepnokc]

An employee's paycheck is just a portion of what it costs to support an employee. Software licenses alone are a huge chunk of change. Health insurance, subsidized lunches, electricity, water, etc.... it all adds up.

And don't forget matching taxes and medicare as well as unemployment and worker's comp. A 10hr employee actually cost about $13 in actual cash not including medical and other perks. This is why you will often see companies bring in their employees as contract labor to avoid matching costs but this can be very dangerous if they truly are not contract labor.

[chuck5815]

And don't forget matching taxes and medicare as well as unemployment and worker's comp. A 10hr employee actually cost about $13 in actual cash not including medical and other perks. This is why you will often see companies bring in their employees as contract labor to avoid matching costs but this can be very dangerous if they truly are not contract labor.

yes, the current administration has doubled down on punishing companies for misclassification employees as contractors. and the oil and gas industry is particularly vulnerable because so much of the labor is provided in a just-in-time, contract basis.

[Bullbear]

Man that sucks for all involved. Very tense times.. my company just closed 6 call centers and my department was cut in half. Thankful for still being employed but even still you have a bit of survivors guilt.

[catch22]

KFOR reporting that the building is closed to the public today and tomorrow.

Also a tweet on Twitter about enhanced security and having blinds drawn over the Windows. Can anyone confirm that? That seems a bit much and possibly just being over dramatic in the moment.