Cimarex Energy layoffs, on the record
Every job cut, severance charge and restructuring Cimarex Energy reported in its annual reports, 2018 to 2020, quoted from the filings.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2020 | 747 | December 31, 2020 |
Job cuts, severance and restructuring
Our summaryThe filing notes that a voluntary early retirement incentive program, which included severance pay, was offered to certain employees during 2016, and that decreased severance expense offset G&A increases.
Word for word“These increases were partially offset by decreased severance expense due to a voluntary early retirement incentive program, which included severance pay, that was offered to certain employees during 2016.” 10-K for 2018
Our summaryCimarex accepted volunteers into an early retirement incentive program, with expected severance expense of about $10.5 million over 2020 into early 2021.
Word for word“During the first quarter of 2020, we accepted volunteers to participate in an early retirement incentive program.” 10-K for 2019
Our summaryCimarex recorded severance expense for former Resolute employees who performed transition work and were subsequently terminated.
Word for word“Included in 2019 was $3.1 million of severance expense related to former Resolute employees who performed transition work at Cimarex and were subsequently terminated.” 10-K for 2019
Our summaryCimarex cut its workforce by about 24% in 2020 through a voluntary early retirement incentive program in the first quarter and an involuntary reduction in workforce in the third quarter, to match staffing to expected activity levels.
Word for word“Our employee base was reduced in 2020 by approximately 24% from December 31, 2019 as a result of a voluntary early retirement incentive program we offered to employees who met certain eligibility criteria in the first quarter of 2020 and an involuntary reduction in workforce program we carried out in the third quarter of 2020.” 10-K for 2020
Our summaryCimarex recorded severance expense in general and administrative expense for the early retirement and workforce reduction programs, all recognized in 2020.
Word for word“General and administrative expense for the year ended December 31, 2020 included $ 28.7 million in severance expense associated with the voluntary early retirement incentive program that we offered to employees who met certain eligibility criteria in the first quarter of 2020 and the involuntary reduction in workforce program that we carried out in the third quarter of 2020.” 10-K for 2020
Our summaryCimarex had accrued severance liabilities for the early retirement and workforce reduction programs at year end 2020.
Word for word“Included in “Accrued liabilities — Other” at December 31, 2020 are: (i) accrued operating expenses (e.g. production, transportation, and midstream expenses) of approximately $ 67.4 million and (ii) accrued general and administrative costs of approximately $ 46.8 million, which consisted primarily of $ 34.1 million in regular payroll-related costs and $ 11.3 million in voluntary early retirement incentive program and involuntary reduction in workforce severance accruals.” 10-K for 2020
| Fiscal year ended | Severance costs |
|---|---|
| 2020-12-31 | $28.7 million |
Cimarex Energy has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Cimarex Energy’s annual reports (10-K for 2020, 10-K for 2019, 10-K for 2018) and the financial data it files with the SEC, as of 2021-02-23. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.