Apache cuts 5pc of workforce as oil plunges

Apache is laying off about 5pc of its workforce, the first big US independent to plan significant job cuts amid a 50pc plunge in crude prices.

"It's a step we took after pursuing other measures including a slowdown in activity and reduction in budgets given the current price environment," it said.

Apache sold onshore North American acreage for about $1.4bn in November as part of its plan to shed non-core assets. In addition, it has sold more than $10bn in assets over the past two years amid pressure from activist shareholders to focus on North America operations.

The company in November also said that it was cutting its spending on North American exploration and production this year to about $4bn from the $5.4bn it planned to spend in 2014. Apache joins a growing list of independent producers that includes Continental Resources and ConocoPhillips which have reduced their spending plans for next year amid the plunge.

North America-focused operators have been hard hit by the downturn as shale oil is more expensive to drill and the sector as a whole has historicallyoutspent its income to fund operations and expansions on the back of a strong market.

Halliburton, the world's second-largest oilfield services provider, laid off about 1,000 employees outside the US last year.

mg/dcb

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