Ovintiv establishes 25% of the workforce after the demand for oil collapses

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Ovintiv Inc. said on Thursday it laid off 25% of its total workforce this month as oil and gas producers struggling with plunging fuel demand and falling prices due to COVID-19 crisis.

The company said it now has around 2,100 employees and contractors.

Ovintiv, formerly known as Encana, supplemented by a base change from Calgary to Denver in January, which chief executive Doug Suttles motivated would allow the company access to deepening the capital market.

However, that vision was shattered as the pandemic eroded demand for oil, as prices plummeted more after Saudi Arabia and Russia in March threatened to flood the market with oil.

Many shale producers have recently cut their workforce, slashed budgets and cut dividends in efforts to save enough money to survive as investors to turn their backs on the industry.

Ovintiv shares have fallen by more than half in value so far this year, in the United States, oil prices have fallen by about 38%.

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