HOUSTON (Reuters) – U.S. oil producer Hess Corp <HES.N> is cutting about 10% of its workforce and streamlining operations after reporting its fifth quarterly loss in a row, according to people familiar with the matter.
Energy companies have slashed spending and production as petroleum prices have dropped 31% this year. A sharp decline in fuel demand due to the COVID-19 pandemic has oil companies girding for a prolonged period of weak prices.
Hess, which had about 1,770 employees as of Dec. 31, dismissed about 165 full-time workers this week and terminated an undisclosed number of contract employees, according to people familiar with the matter.
A spokesperson declined immediate comment.
It has pared spending on new projects this year by more than $1 billion from its initial plan. A $320 million second quarter loss pushed Hess’s first half loss to $502 million.
Shares rose 2% to $53.78 on Friday but are off 21% year to date.
(Reporting by Gary McWilliams; Editing by David Gregorio)