Tumbling oil prices have resulted in job losses at the US and UK branches of Chinese energy firm Nexen Energy.
The company announced plans to cut 400 jobs in the US and UK this morning. Broken down, 340 employees will be lost from the North American operation in Calgary, while 60 jobs will be lost in the UK.
The company belongs to CNOOC, China's state-owned energy giant. After the US and Canadian governments approved the acquisition in 2013, Nexen was purchased by CNOOC for more than $15bn (£10bn).
But an “industry downturn that has affected all companies in the sector” means the current work force is unsustainable. The cuts amount to 13 per cent of Nexen's 3,200 employees.
“A decision was made to conduct a thorough review of our organisation to ensure our long-term viability and sustainability,” chief executive Fang Zhi said in a statement.
While regrettable, these organisational changes are necessary to align the company with our reduced capital spending programme. We take these decisions seriously, and all impacted employees have been treated fairly and with respect.