Whiting Petroleum Corp. said it reduced its headcount on July 31 as part of an organizational transformation made by the Denver-based shale producer to cut costs.

Whiting is expecting $50 million in annual cost savings as a result of the restructuring, which included the 33% reduction to its workforce. The cost reductions were a part of a comprehensive assessment of the company’s organization, operations and cost structure and follow a second-quarter surprise loss reported by Whiting.

“We aim to be as efficient as possible and that is why we made the difficult decision to reduce our workforce in order to realize significant annualized cost savings,” Whiting CEO Brad Holly said in a statement on July 31.

In total, Whiting reduced its workforce by 245 positions, of which 94 positions were executive and corporate positions. The company expects to incur a one-time charge of roughly $8 million in the third quarter in connection with the restructuring, according to the company release.

Holly, who thanked the employees affected, also added: “As the oil and gas industry landscape continues to evolve and investor focus shifts to prioritize predictable capital returns, we see a tremendous opportunity to transform Whiting into a leading, value-focused developer of unconventional assets with a commitment to safety, cost-efficiency, disciplined capital expenditure and maximizing returns.”

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Whiting controls one of the largest acreage positions in the Bakken/Three Forks plays in the Williston Basin across North Dakota and Montana. The company also operates in the Denver-Julesburg Basin of Colorado.

On July 31, Whiting also reported adjusted net loss of $25.7 million, or 28 cents per share, for the second quarter, from $57.3 million, or 62 cents per share, a year earlier. Analysts were expecting a profit of 30 cents per share, according to report by Reuters citing Refinitiv IBES.

Emily Patsy can be reached at epatsy@hartenergy.com.

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