This week, WPX Energy, Inc. announced that it would lay off about 83 employees, reducing its workforce by 8 percent, and that its Denver office would see its numbers reduced from about 156 to less than 15.
Though WPX is not the first, nor will it be the last, to announce layoffs in the face of lower commodity prices, the dramatic impact on Denver was startling. The company said many of those laid off from Denver would be offered positions at its Tulsa headquarters, but that likely is of little comfort to those who do not want to or cannot move to Tulsa, or who might find themselves separated from their families if they do.
We were struck by comments from WPX CEO Rick Muncrief: "These are tough decisions that impact good people – people who have worked hard and done their best for WPX. We do not take that lightly." We take Mr. Muncrief's statements at face value, and more than an example of public relations 101.
Tens of thousands of people across the country are losing their jobs in the face of declining prices. Almost without exception, their jobs are going away through no fault of their own, and there is nothing they can do about it.
In recent weeks, the daily questions of "What is oil at today?", "How low do you think it will go?" and the like have almost become an industry parlor game. We sincerely hope that none of us forget that to those losing their livelihoods it is far from a game. We also hope the industry shows compassion and generosity to those good people now searching for new ways to support their families.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
