Marathon cuts staff, closes Denver office

Petroleum News Staff

Marathon Oil said Sept. 4 that it is realigning, eliminating approximately 265 staff positions primarily at the company’s Houston headquarters, consolidating its U.S. production organization and reducing or eliminating non-essential activities.

Clarence Cazalot Jr., the company’s president and CEO, said the plans “are part of a continuum of steps Marathon has taken during the past two years to improve our competitiveness and enhance shareholder value.”

The company expects the changes to result in an annual pre-tax cost savings in excess of $65 million. Marathon’s U.S. production organization will be consolidated into two business units, northern and southern, headquartered in Houston, and the company’s business unit office in Denver, Colo., will be closed.

Marathon said it expects to maintain field personnel in production offices in Anchorage, Alaska; Cody, Wyo.; Lafayette, La.; and Midland, Texas. Existing production field offices will be retained with few positions impacted, the company said, and approximately 230 positions will be transferred to Houston.

Cazelot said the company also expects further cost reductions from outsourcing some services and functions.