Britain based oil company Tullow Oil has announced plans to retrench a third of its workers in Kenya in a bid to cut down on administrative and operational costs.
The job cuts will affect expatriate, national, contract, fixed term and permanent workers. The company made the announcement via an internal memo to staff seen by Calla News.
“The company has had to review and assess its financial performance and business operations to ensure resources are allocated in the most efficient way possible and to ensure that the current structure of Tullow is meeting the demands of the business effectively. These factors have significantly affected the ability of the company to continue sustaining the high human resource wage bill. Reluctantly, it is now inevitable that there may be job losses and redundancies,” said the firm’s Managing Director for its Kenyan subsidiary Martin Mbogo in the internal memo.
Mr. Mbogo however reiterated that the laid off workers will be notified first and given their their salaries up to the date of termination and redundancy severance dues.
The announcement by Tullow comes on the back of a difficult year for the company which let go of both its Chief Executive Officer and Exploration Director in 2019 following a poor production outlook. Last year, the company similarly reduced its output expectations for its projects in Ghana. The company’s performance has also been affected by the fact that samples from its oil projects in Guyana have tested positive for high amounts of Sulphur. The firm has since suspended dividend payouts with the administration focusing on a turn-around strategy
As of end of day Tuesday the company’s market capitalization stood at approximately Ksh.90.3billion. Tullow Oil’s debt portfolio on the other hand stood at Ksh.81 billion at the end of 2019.