SWN filing shows layoffs for 200
In a SEC filing dated June 27, Southwest Energy Company (SWN) indicated planned layoffs. In the filing, made by SWN, it stated it had notified “affected employees of a workforce reduction plan,” indicating layoffs.
The filing states the company expects what it addressed as “The June 2018 workforce reduction” to impact “… approximately 200 employees, including officers, across almost all locations and functions.”
From the filing: “Affected employees are being offered a severance package, which includes a one-time cash payment depending on length of service and, if applicable, current value of a portion of equity awards that will be forfeited. The Company expects the plan to be substantially implemented during the third quarter of 2018. The Company expects to record a pre-tax charge to earnings in the second quarter of 2018 ranging from approximately $18 million to $19 million, including one-time cash severance payments.”
The filing continues: “This reduction, together with other employee departures and position eliminations that have occurred since the end of 2017, is expected to decrease personnel-related costs of the Company by approximately $60 million to $65 million on an annual basis going forward, exclusive of the one-time separation benefits. A portion of these savings represent costs that would have been capitalized rather than expensed. The workforce reduction results primarily from a previously announced study of structural, process and organizational changes to enhance shareholder value, which continues with respect to other aspects of the Company’s business and activities. This reduction does not include any adjustments to workforce relating to strategic alternatives being pursued for the Company’s Fayetteville Shale and related midstream gathering assets.”
A SWN representative said the company was not able to provide any additional information beyond what was stated in the SEC filing.