EQT Corp., the nation’s largest independent natural gas producer, has laid off nearly one-fourth of its workforce.
In a news release, the Pittsburgh-based driller confirmed late Tuesday afternoon that it laid off 196 of its 800 employees. EQT said it “is streamlining its business to improve operational effectiveness and create a more efficient and nimbler organization.” The company said the downsizing includes dropping from 58 departments to 15.
The layoffs, EQT said, will save about $50 million of annual general and administrative costs.
EQT has undergone significant changes over the past year. Chief executive officer Toby Z. Rice launched a proxy battle last October, one that became public in December after EQT announced miserable third-quarter results. He and his brother, Derek, nominated seven new candidates for the board, who were approved in a shareholders vote at the company’s annual meeting in July. Toby Rice then was elected CEO.
The Rices and a third brother, Danny, who was on the 12-member board before the July vote, founded Rice Energy – an oil and gas firm – in 2008. EQT bought Southpointe-based Rice Energy in November 2017. Before the sale, Danny Rice was CEO, Toby, chief operating officer, and Derek, vice president of exploration.
Toby Rice said in a statement Tuesday that this “action represents another significant milestone as we transform EQT into a modern, technology-driven and efficient natural gas producer.
“I’d like to thank those employees who are leaving for their contributions to EQT. We firmly believe this is a step we must take to create a more efficient organization and to enable our employees to succeed.”
EQT focuses its gas operations in the Appalachian Basin, operating mostly in Pennsylvania, West Virginia and Ohio.