After layoffs, they now have less than 1600 full-time employees down from 2150 at the start of 2013. They got rid of their CEO as well and a few other high ranking executives. The $25 million charge is peanuts.
So let's all do the math. 2150 - 1600 is 550. So let us assume they've gotten rid of 550 employees. That comes out to severance packages of about $45,454 per employee. Obviously each employee didn't get that large of a package. The fired executives probably ate up about $5 million of that $25 million easy.
This isn't a negative for investors...it's a positive! Most likely it could signal an asset sale which is why they are reducing work force, but that will come out in time.
Pretty simple if you read the info provided and do the math.
News facts fit the pattern expected if you are fixing up a property before putting it on the market or just making home improvements. If you were looking to buy a company like PWE, you would prefer to have it cleaned up of excessive labor costs and less attractive properties and projects. So, I think this news should strengthen the group that believes the company is now more attractive for purchase.
Nice post. If the market for light oil assets/land is soft right now, reduced variable costs in the form of full-time headcount is a good start. Hard to say if these guys are setting-up for a company buyout or turnaround. Does selling the entire company or just parts of it make the most sense????