From the Houston Business Journal

Freeport-McMoRan Oil & Gas, the Houston-based oil and gas arm of Phoenix-based Freeport-McMoRan Inc. (NYSE: FCX), has disclosed another round of job cuts following recent divestitures.

The company recently notified the Texas Workforce Commission it plans to cut another 26 jobs in Houston during the two-week period beginning July 31. The majority of the affected employees were expected to be placed on a paid leave of absence beginning June 1, according to a letter sent to employees.

​This is at least the company’s fifth Worker Adjustment and Retraining Notification Act letter to cite its recent divestitures as the cause of the Houston job cuts.

“We have carefully reviewed our operations at Freeport-McMoRan Oil & Gas LLC in light of the recently announced divestiture of key assets in onshore California and the Gulf of Mexico,” the company wrote in all five letters to the TWC. “Regrettably, we have determined that we no longer require a number of employees to support these assets.”

The employees affected by the latest round of cuts are at 700 Milam St., suite 3100, in downtown Houston. Previously, FM Oil & Gas disclosed it would cut 36 jobs between March 31 and April 1320 jobs between April 30 and May 1324 jobs between June 5 and June 19 and 25 jobs between June 30 and July 13 due to the divestitures. Those divestiture-related cuts came after previous workforce reductions the company made last year.

Freeport-McMoRan Oil & Gas has been selling off major assets and cutting jobs over the past year as it restructures. In the second half of last year, the company sold its Gulf of Mexico assets to The Woodlands-based Anadarko Petroleum Corp. for $2 billion and its California assets to Denver-based Sentinel Peak Resources in a deal that could be worth as much as $742 million.

The restructuring, which was announced in April 2016, also included eliminating the role of the subsidiary’s CEO, James “Jim” Flores.

As with the previous rounds of job cuts, employees affected by the July 31 cuts do not have bumping rights and are not represented by a union. Freeport-McMoRan plans to offer the affected employees severance benefits and transition programs, including outplacement services.

 


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