Apache Corporation is closing its San Antonio office and eliminating more than 270 jobs as part of a reorganization designed to cut costs.
The Houston-based company confirmed Thursday it is reducing its global workforce by up to 15 percent — roughly 500 jobs — as part of a broader restructuring that was announced late last year. The job cuts include those eliminated through attrition, and at least some of the San Antonio jobs will transfer to Houston or other field offices, an Apache spokesman said.
“Apache has already centralized key activities and seen positive results and is looking to take further steps in that direction,” Apache spokesman Phil West said. “Staff reductions are always difficult, and we are working to support those employees who will be affected.”
The oil and gas producer had a difficult 2019 as its stock value plunged more than 50 percent from fall 2018 through a recent December low. But Apache’s stock has taken a big turn up this week with the discovery of oil off the coast of Suriname in South America.
Apache said the San Antonio closing and the 272 job cuts will be finalized in early March, according to a letter filed with the Texas Workforce Commission.
The closing of the San Antonio office is part of the reorganization plan to save an extra $150 million per year. In addition, Apache aims to slash 2020 capital spending by up to 20 percent — a cutback of $250 million to $500 million. Apache most recently reported a larger-than-expected $170 million loss for the third quarter.
While Apache has a notable presence in South Texas’ Eagle Ford shale closer to San Antonio, the Houston producer has increasingly leaned on growth in West Texas’ booming Permian Basin.
Apache could theoretically manage its Eagle Ford operations from Houston or even its West Texas hub.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.