Africa focused oil and gas giant, Tullow Oil Plc has planned to cut back its employees in the West African nation, Ghana, by 25 percent.
The top management level is expected to see a 35 percent reduction.
The oil and gas firm also plans to cut back its global workforce by 35 percent this year.
The UK firm has interests in 80 exploration and production licences across 15 countries, which are managed as three Business Teams: West Africa, East Africa and New Ventures.
In Ghana, Tullow Oil operates the country’s Jubilee and TEN fields.
An insider who spoke to energynewsafrica.com, said the company has decided to cut back its workforce in a bid to restructure its business due to some challenges in 2019, which impacted negatively on the company’s revenue portfolios.
“Everywhere, Tullow is present. We are in Kenya, Dublin, Cape Town, London etc all that in total, the cut back is 35 percent. Where I’m not sure is Guyana because that office is very small, and don’t forget we’re currently doing exploratory activities so there is not much work there.”
According to the insider, the company’s value dropped by 30 percent in 2019, hence the need to downsize the workforce in order to remain in business and be able do what it has planned to do this year and beyond.
“Our company lost or its value dropped by 30 percent last year. That is what has caused it the decision to cut back workforce because by losing 30 percent of the value of the business, you lose 30 percent of your potential revenues. This means less money to what you want to do so you cut your coat,” our insider source said.
In December last year, Tullow’s shares fell by 60 percent following announcement by Tullow’s CEO, Mr Paul McDade and Angus McCoss, Exploration Director that they had quit the firm.
More than £1.05bn was wiped off Tullow’s market value, leaving the company reeling, valued at £801.7m.
The company is yet to announce a new CEO after the resignation of Mr Paul McDade.