New CEO, immediate job cuts at Crescent Point Energy announced
Crescent Point Energy Corp. today named Craig Bryksa its new chief executive officer and said it would immediately reduce 17 per cent of its workforce as the Canadian energy producer looks to turn around its business.
The Calgary, Alta.-based company, which had 1,085 full-time permanent employees as of last December, told Reuters the workforce reduction is expected to generate annual savings of over $50 million.
The company said it would also divest some assets.
The company, whose stock has underperformed the broader market in recent years, in May won a proxy fight with activist investor Cation Capital.
Crescent Point’s stock has dropped 18.4 per cent this year, much bigger than the 1.4 per cent fall in the S&P TSX Energy Index.
A widening in the discount at which Canadian oil trades to the U.S. light crude has hurt the company’s bottomline, while costs and debt have risen.
Crescent Point also said it planned to reduce its debt by more than $1 billion by end-2019. The company had a net debt of $4.02 billion, according to its latest earnings report.