EQT Cuts 23 Percent of Workforce



EQT Cuts 23 Percent of Workforce
The Pittsburgh-based natural gas producer expects to save approximately $50 million annually from the layoffs.

Appalachian Basin natural gas producer EQT Corp. reported Tuesday afternoon that it is cutting 196 positions, or approximately 23 percent of its workforce, in conjunction with an “organizational streamlining.”

Pittsburgh-based EQT, on the heels of a successful proxy fight by activist shareholders, stated that it is streamlining its structure from 58 to 15 departments to improve organizational focus and more closely align the firm with its mission. The company noted that staff reductions amount to approximately $50 million of annual general and administrative costs.

“Today’s action represents another significant milestone as we transform EQT into a modern, technology-driven and efficient natural gas producer,” EQT CEO Toby Rice said in a written statement. “Following the addition of proven leadership and the establishment of our digital work environment, we evaluated the business and determined the appropriate ‘future state’ organizational structure.”

When contacted by Rigzone for details about the time frame for implementing the layoffs and how the 196 staff reductions will be distributed across the organization, an EQT spokesperson declined comment. A presentation from the proxy battle posted to the U.S. Securities and Exchange Commission website provides insights on the direction in which EQT’s new leadership aim to take the company.

“I’d like to thank those employees who are leaving for their contributions to EQT,” concluded Rice. “We firmly believe this is a step we must take to create a more efficient organization and to enable our employees to succeed.”

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WHAT DO YOU THINK?


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Nancy Conn  |  September 14, 2019
I think shareholders will be sorry.. This is a company who filed for bankruptcy a year ago or less.
Dave  |  September 13, 2019
Nice milestone...but not for those employee let go who must feel pretty useless. That was the tone of the commentary
Mick M  |  September 12, 2019
Layoffs the false economy, what is going to be the real cost.
Tim Chutz  |  September 12, 2019
EQT rode the tide of blind optimism for nearly ten years, but finally the reality of a more streamlined market caught up to them. However, their gas field properties are literally world class and, with proper guidance and strong oversight by a disciplined BOD, the company should be poised for a profitable and steady rise in stature over the next two or three decades. Would not be surprised to see a possible merger or takeover once management is settled in and properly functioning.